A 1000 bond with semi-annual coupons with coupon rate of 6


A $1000 bond with semi-annual coupons, with coupon rate of 6% per annum convertible semi-annually, matures at par on October 15th, 2020. The bond is purchased on June 28th, 2005 to yield the investor a nominal rate of 7% per annum convertible semi-annually. What is the purchase price (i.e. the at price of the bond)? Assume simple interest between bond coupon dates. The following table may be useful:

Date of the Year

April 15th 105

June 28th 179

October 15th 288

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Financial Management: A 1000 bond with semi-annual coupons with coupon rate of 6
Reference No:- TGS0981481

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