Question

Consider the following $1,000 face value bond which makes semi-annual coupon payments, Bond Coupon rate Price Maturity Settlement Date IBC 5% 9.54 ecember 1, 2030 January 4, 2019 What is the total price you would pay for this bond? Enter your answer rounded to two decimal places. Number

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Total price:

= Clean price+Accrued interest

= $1,000×99.54%+$1,000×5.5%×34/365

= $995.40+$5.12

= $1,000.52

Hence, total price is $1,000.52

Add a comment
Know the answer?
Add Answer to:
Consider the following $1,000 face value bond which makes semi-annual coupon payments, Bond Coupon rate Price...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT