Question

An Australian Government bond with a face value of $1,000 and an annual coupon rate of...

An Australian Government bond with a face value of $1,000 and an annual coupon rate of 5.5% matures in seven years, pays interest semi-annually, and has a yield to maturity of 6.2%. What is the price of the bond right after it makes its first coupon payment?

a. $947.21

b. $960.73

c. $945.08

d. $963.01

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