Unformatted text preview: book value on January 1, 2012. (5) A 20year bond has 8% coupon payable semiannually with a face value of $100. It is issued on January 15, 2000. On April 1, 2005, Aaron purchased this bond with a quoted price $112.225 which is calculated by a semitheoretical method. Use an exact day count, then ﬁnd (a) on April 1, 2005, the elapsed time after the last coupon payment, (b) the accrued coupon, and (c) dirty price (exact price) of the bond on April 1, 2005. (6) From Problem 5, assume a nominal rate of interest 6% convertible semiannually. Then, ﬁnd the bond prices on January 15, 2005 and on July 15, 2005 respectively. The following are for your practice, not as assignments. 6.7.1, 6.7.3, 6.7.5, 6.8.3, 6.8.5, 6.8.7, chapter review 1, 3 1...
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This note was uploaded on 11/21/2011 for the course MATH ACTSC 231 taught by Professor Zhou during the Spring '10 term at Waterloo.
 Spring '10
 ZHOU
 Math

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