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You are planning on buying $100,000 face value of Australian Commonwealth Government Bonds. The bonds mature...

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Finance

You are planning on buying $100,000 face value of AustralianCommonwealth Government Bonds. The bonds mature on 15 February 2027and have a coupon rate of 4.75%. If your purchase will settle on 27April 2012, and the quoted yield for the bond is 5.81%, what is thecash price of the bonds to the nearest dollar?

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3.8 Ratings (410 Votes)
Price of bond Present value of all coupon payments at yeildpresent value of redemption price at yeild Yeild 581 or 00581 Redemption valueface    See Answer
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