Question

Suppose a bond with $100 par value is purchased between coupon periods. The days between the...

Suppose a bond with $100 par value is purchased between coupon periods. The days between the settlement date and the next coupon date is 115. There are 183 days in the coupon period. Suppose that this bond has a coupon rate of 7.4% and there are 10 semiannual coupon payments remaining. Assume a 5.6% discount rate. The dirty price for this bond is closest to:

A.

$107.76

B.

$106.80

C.

$109.13

D.

$100

Homework Answers

Know the answer?
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
Similar Questions
Suppose that a bond is purchased between coupon periods. The days between the settlement date and...
Suppose that a bond is purchased between coupon periods. The days between the settlement date and the next coupon period are 80. There are 182 days in the coupon period. Suppose that the bond purchased has a coupon rate of 7% and there are 8 semiannual coupon payments remaining. The par value of the bond is $100. a. What is the full price for this bond if a 6.2% annual discount rate is used? b. What is the accrued interest...
Suppose that a U.S. Treasury note maturing February10, 2009 is purchased with a settlement date of...
Suppose that a U.S. Treasury note maturing February10, 2009 is purchased with a settlement date of July 31, 2007. The coupon rate is 3% and the maturity value of the position is $1,000. The next coupon date is August 15, 2007. What is the full (dirty) price of this bond given the required yield is 4.0%? (Note that there 181 days in the coupon period and there are 15 days between the settlement date and the next coupon date.) 1000.72...
Suppose that there are 4 semi-annual coupons remaining for a 7% coupon bond. There are 104...
Suppose that there are 4 semi-annual coupons remaining for a 7% coupon bond. There are 104 days until the next coupon payment date and there are 182 days in a coupon period. Assuming that the annualized discount rate on a bond-equivalent yield basis is 10%, what is the clean price of this bond? Par value is $100.
Suppose that there are 4 semi-annual coupons remaining for a 7% coupon bond. There are 104...
Suppose that there are 4 semi-annual coupons remaining for a 7% coupon bond. There are 104 days until the next coupon payment date and there are 182 days in a coupon period. Assuming that the annualized discount rate on a bond-equivalent yield basis is 10%, what is the clean price of this bond? Par value is $100.
A semi-annual coupon Corporate bond was purchased for settlement on January 5, 2013. The last coupon...
A semi-annual coupon Corporate bond was purchased for settlement on January 5, 2013. The last coupon was paid on September 15, 2012. Using the 30/360 day count convention, answer the following questions: a. on what date will the next coupon be paid? b. how many days passed between the last coupon paid and the settlement date? c. how many days are there in the current coupon period?
Dirty Bond Price A 4.4% bond matures October 15th, 2026. The trading date was June 25th,...
Dirty Bond Price A 4.4% bond matures October 15th, 2026. The trading date was June 25th, 2018. The YTM was 5.0% on that date. The bond pays coupons semiannually. Assume each month has 30 days and each semiannual coupon period has 180 days. The "dirty" price of the bond (cash price paid at the settlement date) should have been $______________.   Margin of error for correct responses: +/- $.05. It's not incomplete. This is all the information provided.
Redd Industries has just issued a callable, $1000 par value, five-year, 5% coupon bond with semiannual...
Redd Industries has just issued a callable, $1000 par value, five-year, 5% coupon bond with semiannual coupon payments. The bond can be called at par in three years or anytime thereafter on a coupon payment date. If the bond is currently trading for $950.00, then its yield to maturity is closest to: Select one: A. 6.5% B. 6.18% C. 6.0% D. 6.8% Redd Industries has just issued a callable, $1000 par value, five-year, 5% coupon bond with semiannual coupon payments....
An investor buys a corporate bond with a coupon rate of 7.6%. The transaction is settled...
An investor buys a corporate bond with a coupon rate of 7.6%. The transaction is settled on July 5, 2020. The bond makes semiannual coupon payments on April 28 and October 28 each year and matures on April 28, 2026. Assume the 30/360 day-count convention and $100 par value. The yield to maturity of the bond is 6.3%. Keep four decimal places for all calculations. 1) (7 points) Calculate the dirty (full) price of this bond on the settlement day....
You buy a 4% coupon T-bond with par value of $1,000. You become the owner 125...
You buy a 4% coupon T-bond with par value of $1,000. You become the owner 125 days after the last coupon payment, and there are 57 days remaining until the next coupon payment. The bond’s clean price is $900. Calculate the dirty price (also referred to as the full price or invoice price).
A 12-year bond was issued five years ago. The bond is denominated in US dollars, offers...
A 12-year bond was issued five years ago. The bond is denominated in US dollars, offers a coupon rate of 10% with interest paid semi-annually, and iscurrently priced at 102% of par. The bond’s: A. tenor is five years B. nominal rate is 5% C. tenor is seven years D. price must be $1,020.00 Short-term, unsecured promissory notes issued in the public money market or via a private placement that represents a debt obligation of the issuer: A. Commercial paper...