Assume we have an investor who bought an $18 000 government bond (Par Value) on 16/07/16. The Treasury bond is set to mature on 02/01/22 and has a coupon rate of 12%p.a. payable semi-annually and a...


Assume we have an investor who bought an $18 000 government bond (Par Value) on 16/07/16. The Treasury bond is set to mature on 02/01/22 and has a coupon rate of 12%p.a. payable semi-annually and a discount rate of 10%. Calculate the Treasury bond’s dirty price assuming an actual 365- day count convention and that those coupons are paid on 02/01 and 02/07 of each year.



May 26, 2022
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