Suppose that it has been 65 days since the last coupon


Bond Pricing and Accrued Interest

A 18 year $1000 face value coupon bond pays a coupon rate of 6.40% and has a YTM of 3.8%. Coupon payments made by the bond is paid semi-annually.

(a) What is the current price of the bond?

b) Suppose that it has been 65 days since the last coupon payment. How much accrued interest must the buyer of the bond pay to the seller?

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Financial Management: Suppose that it has been 65 days since the last coupon
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