View the step-by-step solution to:

A semi-annual corp. bond with a coup. rate of 4% is $1150.50 today. Their are 160 days in each coupon period. It's been 60 days since coup. was paid....

A semi-annual corp. bond with a coup. rate of 4% is $1150.50 today. Their are 160 days in each coupon period. It's been 60 days since coup. was paid. How much $$$ do you need if you wanted to buy this bond today?

Top Answer

R= 4% Fv = $1150.50 n=... View the full answer

2 comments
  • where would the 1.0408 come from?
    • bobo9175
    • Apr 05, 2018 at 3:36am
  • (1+0.04/100)100= (1+0.004)100 = (1.0004)100= 1.0408
    • sonikaahuja
    • Apr 05, 2018 at 4:12am

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Ask a homework question - tutors are online