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Consider a Corporate Bond with a $1000 Face Value,8% Coupon

Question 16

Multiple Choice

Consider a corporate bond with a $1000 face value,8% coupon with semiannual coupon payments,7 years until maturity,and a YTM of 9%.It has been 57 days since the last coupon payment was made and there are 182 days in the current coupon period.The dirty (cash) price for this bond is closest to:


A) $949.70.
B) $961.40.
C) $936.40.
D) $948.90.

Correct Answer:

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