You buy a 10-year corporate bond that sells for 94.5% of its $1,000 face value right after the bond is paid a coupon. The bond pays $30 coupons every six months. You hold the bond for one year, collect two coupons, pocket the cash, and then sell the bond to earn a 5.6% holding period return for the year. What was the bond’s price at the time you sold it?

Answer rating: 100% (QA)

Answer Purchase price P 945 of 1000 945 Coupon ... View the full answer