A 20-year bond with a $1,000 face value was issued with a yield to maturity of 4.3% and pays coupons semi-annually. After ten years, the yield to maturity is still 4.3% and the clean price of the bond is $959.71. After three more months go by, what would you expect the dirty price to be?

Question

Quizplus · Accepted Answer

B) FV = $1,000, PV = -959.71, n = 20, i = 2.15%, solve for PMT.
PMT = $19.00, so coupon rate per 6 month 11ea84dc_f56b_1b51_9a63_0559c60d61ea_TB1316_11_TB1316_11 Accrued interest for three 11ea84dc_f56b_4162_9a63_09474e212c6f_TB1316_11_TB1316_11 so dirty 11ea84dc_f56b_4163_9a63_77e160096e9e_TB1316_11_TB1316_11

A 20-Year Bond with a $1,000 Face Value Was Issued