Question

A 5% coupon corporate bond settlement price is 104.315 at exactly 2 months before the next coupon payment date. What is the invoice price of the bond (% of face, rounded % to three places after the decimal)? Correct Answer: 105.982 ± 0.001

Answer 1

Answer:

105.982

Explanation:

You should know before you proceed to the attached file for a step by step explanation of how the answer is gotten that, Bond is given, not the details of coupon payment, annual or semi annual, it is the general assumption of Bond pricing that bond pay semi annual coupon. Go through the attachment now for further explanation.