in answer, why T is 29, i think is 30. canyou give me an explain. A 4.5% Austral
ID: 2818670 • Letter: I
Question
in answer, why T is 29, i think is 30. canyou give me an explain.
A 4.5% Australian Treasury bond maturing on the 15th June 2020 has coupons payable on the 15th December and the 15th June each year. (There are 78 days to the next coupon payment and there are 182 days in the current coupon period.) What is the value of the bond today given a yield of 5.01%? It is currently 29 March 2006. 00)-7%2(4yi+(1-(1+5.01 /200)"29-12). 54.50,(1-(1+5.01/200) 29-1 100 (1+5.01/200)29-1 P (1+5.01/200)7182 - $96.137 per $100.00Explanation / Answer
T is 29 since there are fourteen and half years till maturity
i.e From 2006 to 2020 there are 15 years, but since the maturity is in June, the 15th December of 2020 should not be counted in N
so the time frame is 2006 to 2019 full years and a semi annual period of 2020
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