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A bond pays a semiannual coupon, and the last coupon was paid 61 days ago. If th

ID: 2731580 • Letter: A

Question

A bond pays a semiannual coupon, and the last coupon was paid 61 days ago. If the annual coupon payment $75. what is the accrued interest? (Assume 182 days in the 6-month period.) $13.21 $12.57 $15.44 $1632 The yield to maturity for 1 to 4 year, default-free, zero-coupon bonds is shown below. The implied year forward rate 2 year from today is closest to? 2.07% 8.03% 9.01% 11.12% Assuming semiannual compounding, a 20-year zero coupon bond with a par value of $1,000 and a required return of 12% would be priced at____$97.22 $104.49. $364.08. $732.14 For problem 9. assume it is 2 years later and the required return for this bond is now 9%, what is V price? 90

Explanation / Answer

7. Accrued interest = (75/2) x 61/182

= $12.57

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