A 5% bond makes coupon payments on June 15 and December 15 and is trading with a YTM of 4%. The bond is purchased and will settle on August 21 when there will be four coupons remaining until maturity. Calculate the full price of the bond using actual days.
How do I use the bond function within the calculator to find the full price?
I entered the following within the bond function of the calculator:
SDT= 8-21-2021
CPN= 5
RDT= 12-15-2022
RV= 100
ACT
2/Y
YLD= 4.00
PRI=? I pressed CPT and now have 101.264782
AI= 0.915301
Per the study guide, the answer is a full price of 1,026.46.
How do you calculate this?
RDT should be 6-15-2-2023 (gives 4 coupons). This will give PRI = 101.7300661 and PRI + AI = 102.6453671.
Got it, I corrected my typos and you are correct. Thank you as always!