You are considering a coupon bond (par=$1,000) that pays semiannual interest with a coupon rate of 6%. The bond currently has a bid price of 116.89 and an ask price of 117.00. If the last interest payment was made 60 days ago, and there are 180 days between the last interest payment and the next interest payment, what is the invoice price of the bond?
A. 
$1,180.0 

B. 
$1,170.0 

C. 
$1,190.6 

D. 
$1,168.9 
You purchase a 10year Tnote which has a par value of $1,000 and a yieldtomaturity of 8%. Its coupon rate is 9%. If one year later the yield decreases to 7%, and if you sell your bond after receiving interest payments, what is your holding period return?
A. 
14.4% 

B. 
13.6% 

C. 
15.2% 

D. 
16.8% 
SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE
SOLVED WITH BA II PLUS CALCULATOR
Get Answers For Free
Most questions answered within 1 hours.