Suppose that today is April 15. A Treasury bond with a 10% coupon paid semiannually every January 15 and July 15 is lis
Posted: Wed Jul 06, 2022 6:28 pm
Suppose that today is April 15. A Treasury bond with a 10%coupon paid semiannually every January 15 and July 15 is listed inthe Wall Street Journal as selling at an ask price of 101.04. Ifyou buy the bond from a dealer today, what price will you pay forit? Hint: When you count # of days from Jan 15 to Apr 15,please just count either Jan 15 or Apr 15, but not both. For halfyear period, you can assume 182 days.