Assume M Corp bonds have a par value of $1000, a 2.5% coupon, paid 2X per year. These bonds mature in 2 years. Assume a 365 day year.
a) Assume 72 days have passed since the last coupon payment on the M Corp bonds. The bonds are trading at $955. What is the current yield on the bonds?
b) Assume 72 days have passed since the last coupon payment on the M Corp bonds. The bonds are trading at $955. What is the invoice price of the bonds?