Problema 10 year australian government bond was just issued, Ask an Expert

Accounting

Problem:

A 10 year Australian government bond was just issued at par with a yield of 3.9% pa. The fixed coupon payments are semi-annual. The bond has a face value of $1,000. Six months later, just after the first coupon is paid, the yield of the bond decreases to 3.65% pa.

Requirement:

Question: What is the bond's new price?

Note: Please provide through step by step calculations.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91166887

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