Posts Tagged ‘income’
Corporate Bonds Investopedia
Question: Calculating Accrued Interest with BA II Plus?
Ok, so I'm trying to teach myself some extra bond analysis. Anyways, I'm trying to do the problem that is on Investopedia's website, but can't get the right answer. Question: On March 1, 2003, Francesca is selling a corporate bond with a face value of $1,000 and a 7% coupon paid semi-annually. The next coupon payment after March 1, 2003, is expected on June 30, 2003. What is the interest accrued on the bond?
The values I type in my calculator:
SDT = 3-1-2003
Coupon =7
RDT = 6-30-2003
RV = 100
360
2/Y
YLD = I leave it at default 0 (I don't think yield has an effect on
AI
I then go to price and hit compute, I get 102.3
I then go to Accrued Interest, I get 1.186
However, investopedia says the answer is 11.67.
Can someone please help me figure out where i'm going wrong
Answer: i got what you did
Corporate Bonds Purchase

Question: Bonds - Finance Question?
Two years ago you purchased 316 Corporate Bonds. The bonds mature in 2029, have a coupon rate of 8.625? and a yield to maturity of 6.46% What was the cost of the entire purchase?
Answer: two years ago is 2007? if it is: 316 is its annuity is monthly?
if its market price is 1000$, the question is lack of information please write all data I ll calculate it, both mathematically and on the excel I had such question 1 week ago in my mid-term exam
write: market price, annuity(annually, semiannually quarterly,monthly or daily), years so now do you want to find out bond's Price?
I can give you excel format now, =PV(0,0646;20;86,25;-1000) here Ytm=0,0646, 20 is years(nper),
86,25 (1000*8,625%) is pmt and Fv is 1000. as far as I could understand from ur question,
Placing a Corporate Bond Order Trading Web site