You are planning on buying $100,000 face value of Australian Commonwealth Government Bonds. The bonds mature on 15 February 2022 and have a coupon rate of 4.75%. If your purchase will settle on 27 April 2012, and the quoted yield for the bond is 4.37%, what is the cash price of the bonds to the nearest dollar?

Answer rating: 100% (QA)

To calculate the cash price of the bonds we need to consider the present value of the bonds future c... View the full answer