What is the market price of the bond


Problem

A treasury bond pays 9% coupon p.a. On June 12, the bond has 63 days to the next coupon payment and there are 297 days since the last coupon payment (assume that there are 360 days in a year). Since the last coupon payment, the bond will have 5 years to maturity. The current market yield for the bond is 8%. What is the market price of the bond?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: What is the market price of the bond
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