Clean price of bond

    • [DOCX File]Pricing of Bonds

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      The price of a bond without accrued interest is called the . clean. price. The exceptions are bonds that are in default. Such bonds are said to be . quoted . flat, that is, without accrued interest. Explain why you agree or disagree with the following statement: “The price of a floater will .

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    • [DOCX File]Chapter 11 - Test Bank

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      If the clean price of this bond on the settlement date is R119,16958 %, determine the all-in price consideration of this bond. Bond A is currently priced at R106,25005 % with a duration of 2,2 and a current yield rate of 10 per cent. What will be the approximate price of the bond…

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    • [DOC File]Recommendations by FIMMDA relating LAF and Instruments …

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      Key Terminologies used in Fixed Income Markets – Par Value, Coupon, Issuers, Yield, YTM, ZCB, Accrual Bond, Clean Price, Dirty Price, Shut Period, SGL, CSGL. Overview of Fixed Income Instruments – Money Market Instruments, G-sec, Corporate Bonds, Derivatives. Primary Market vs Secondary Market for various Fixed Income Instruments

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    • [DOC File]Pricing of Bonds

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      If it becomes a negative 10%, then the bond price becomes $2,296,218.049,925.23. 13. What is the “dirty” price of a bond? The “dirty” (or “full”) price is the amount that the buyer agrees to pay the seller, which is the agreed-upon price plus accrued interest. The price of a bond without accrued interest is called the clean price.

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    • [DOCX File]Invoice Prices and T-Bill Quotes

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      101.496 (clean price) + 3.022 (accrued interest) = 104.518 (invoice price) The invoice price of the bond can also be computed as the present value of the future cash flows Since 139/184 is the proportion of the coupon period since the last payment, it follows that 45/184 is the proportion of the semi-annual period remaining till the next coupon ...

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    • [DOCX File]Chapter 11: The bond market

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      The pro rata coupon amount for this period will therefore be subtracted from the clean price – the bond trades ex interest. Explain how the price volatility of a bond will be affected by. the maturity of the bond. the level of the coupon rate on the bond. The price volatility of a bond for a given change in yield rate . …

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    • [DOCX File]breeseemba.tulane.edu

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      This is because we calculate the clean price of the bond. 1. 8. Any bond that sells at par has a YTM equal to the coupon rate. Both bonds sell at par, so the initial YTM on both bonds is the coupon rate, 5.8 percent. If the YTM suddenly rises to 7.8 percent:

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