The full price of the bond

The price of the bond was $1036.30 at the last coupon payment date and that 43 days have passed since the coupon payment, calculate the full price of the bond given the the market discount rate remains at 8%. (Assume 183 days per half year)

Sample Solution

Full price of the bond = $1036.30 + [(43/183) x 8% x 1036.30]
= $1036.30 + ($37.50)
= $1073.80

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