How many days are there in the current coupon period

Reference no: EM132198476

Question - You initiated a transaction to purchase a 4.100% coupon 30-year corporate bond on Friday 8/31/2018. The maturity date of the bond is 4/20/2029 and its yield to maturity is 3.456%. Please answer the following questions about this bond. (Note: you can check your work in parts (f), (g) and (h) using the BOND spreadsheet in your calculator, but I want to see the equations setup and worked through in those parts for full credit.)

(a) What are the two dates every year on which the bond pays its coupons.

(b) On what date was the last coupon paid?

(d) How many days are there in the current coupon period?

(e) How many days between the last coupon and the SDT?

(f) What is the full price of the bond on the SDT? Draw a timeline for just the current coupon period (like we did in class) and calculate the bond's full price using Method 2 in the handout, which is the method used in the text and slides).

(g) What is the accrued interest on the SDT?

(h) What is the clean price of the bond on the SDT?

Reference no: EM132198476

Questions Cloud

Forecast on any particular day : What events might occur that could produce a significant error in Legolands forecast on any particular day?

Demonstration of strong critical thinking skills : An Abstract is not required. Grading considerations will include: a paper that is academically sound, demonstration of strong critical thinking.

Inventory management plan for fluorescent bulbs : Phoenix Valley Lighting is preparing an inventory management plan for fluorescent bulbs.

Review the triple pundit website : business over the next two decades will be involved in the integration of sustainability into business planning and operations

How many days are there in the current coupon period : You initiated a transaction to purchase a 4.100% coupon 30-year corporate bond on Friday 8/31/2018. How many days are there in the current coupon period

Describe the concept and general requirements of theory : The purpose of this discussion is to help you analyze and convey your understanding about the concept of a theory, the contribution of theoretical evaluation.

The creation of new healthy snack food : Develop a five question survey for researching the creation of a new healthy snack food.

How do you define power : How do you define power? What does it mean to you?

Discuss strengths and weaknesses of psychosocial theory : Explain, in your own words, the strengths and weaknesses of psychosocial theory. Explore how it may apply to individuals you will work with.

User Account

All Pages