Austin Traynor is considering buying a $1,000 face value, semi-annual coupon bond with a quoted price of 104.75 and accrued interest since the last coupon of $33.50. Ignoring transaction costs, how much will the seller receive at the settlement date?
The dirty price is equal to the agreed upon, or quoted price, plus interest accrued from the last coupon date. Here, the quoted price is 1000 * 104.75%, or 1000 * 1.0475 = 1,047.50. Thus, the dirty price = 1047.50 + 33.50 = 1,081.00
The dirty price is equal to the agreed upon, or quoted price, plus interest accrued from the last coupon date. Here, the quoted price is 1000 * 104.75%, or 1000 * 1.0475 = 1,047.50. Thus, the dirty price = 1047.50 + 33.50 = 1,081.00
扫码加好友，拉您进群
全部版块
我的主页
收藏
