An investor holds R 10 000 000 corporate bonds with a coupon of 7.8%. Interest is...
An investor holds R 10 000 000 corporate bonds with a coupon of 7.8%. Interest is paid semi-annually. Calculate the amount received by the investor one period from now (today is the 1 January 2017), based on Actual/360-Day convention.
R 392 167
R 386 795
R 390 000
Cannot be determined from the information provided
Homework Answers
Amount Received after one period is Coupon amount for six months
Semi Annual Copuon amount = Face Value * Coupon Rate * 6/12
= R 10,000,000 * 7.8% * 6/12
= R 390,000
Option C is correct
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