How much will you pay for a raeo bond


Question: Raeo Corp. bonds trade at 100 today. The bonds pay semiannual interest that is paid on January 1 and July 1. The coupon on the bonds is 10 percent. How much will you pay for a Raeo bond if today is:

a) March 1
b) October 1
c) July 1
d) August 15

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Finance Basics: How much will you pay for a raeo bond
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