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You Find the Following Quote for a Corporate Bond ($1,000

Question 42

Essay

You find the following quote for a corporate bond ($1,000 par,paying interest semiannually):
You find the following quote for a corporate bond ($1,000 par,paying interest semiannually):     A) What was the range of the price for the given day? B) How many dollars would you receive from each coupon payment? C) Approximately what risk level is implied by the bond rating? D) What would have been the Last Price on the day before?
A) What was the range of the price for the given day?
B) How many dollars would you receive from each coupon payment?
C) Approximately what risk level is implied by the bond rating?
D) What would have been the Last Price on the day before?

Correct Answer:

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a. The high price was 98.281% × 1,000 = ...

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