A bond with a 7 coupon rate makes payments on january 15


A bond with a 7% coupon rate makes payments on January 15 and July 15 of each year (181-day coupon period). On January 30 (15 days have passed since the last semiannual coupon was paid), the ask price for the bond was reported as 100.0625. On April 15, it was selling at an ask price of 101.125.

b. If you purchased the bond from a dealer on April 15, what price would you have to pay for it? (Note: April 15 is midway through the semiannual coupon period.)

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Financial Management: A bond with a 7 coupon rate makes payments on january 15
Reference No:- TGS02142862

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