Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. correct answer is $98.08. please show work on how

Correct Answer is $98.08. Please show work on how to find the answer! ...

70.2K

Verified Solution

Question

Finance

Correct Answer is $98.08. Please show work on how to find the answer!

image

Consider a bond with a coupon rate of 9% and a face value of $100. Coupons are paid semi-annually. Suppose there are 17 days to the next coupon payment date, and that the bond's quoted price is $94. What is the price an investor would have to pay to purchase the bond today? Assume a 30/360 day-count convention Assume semi-annual compounding. Round your answer to the nearest cent (2 decimal places)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students