Question

Consider the following $1,000 face value bond which makes semi-annual coupon payments, Bond Bank of Montreal...

Consider the following $1,000 face value bond which makes semi-annual coupon payments,

Bond

Bank of Montreal

Coupon rate

8%

Price

99.77

Maturity

June 1, 2030

Settlement Date

January 2, 2019

What is the total price you would pay for this bond? Enter your answer rounded to two decimal places.

Note: Coupons payment are not given in the question anyways!

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Answer #1

Answer:

Given:

Par value = $1,000

Price = 99.77

Total price you would pay for this bond = 1000 * 99.77% = $997.70

Total price you would pay for this bond = $997.70

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