You are considering buying a semi-annual bond that has 20 coupon payments remaining, with the...

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Finance

You are considering buying a semi-annual bond that has 20 coupon payments remaining, with the next
coupon payment occurring 15 days from the settlement date. The bond's coupon rate is 9.4%
and similar bonds are reported to have a yield of maturity of 8.5% There are 182 days between the bond's
coupon payments.
a) What is the maximum price that you are willing to pay for the bond? $
b) If your assumptions are correct then what is the estimated quoted price (remember quotes are a percent
of par value)? $
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