Question

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.

Answer 1