Question

It is April 7, 2017. The quoted price of a U.S. government bond with a $6 \%$ per annum coupon (paid semiannually) is $120-00$. The bond matures on July 27,2033 . What is the cash price? How does your answer change if it is a corporate bond? 

   It is April 7, 2017. The quoted price of a U.S. government bond with a $6 \%$ per annum coupon (paid semiannually) is $120-00$. The bond matures on July 27,2033 . What is the cash price? How does your answer change if it is a corporate bond?
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Options, Futures, and Other Derivatives
Options, Futures, and Other Derivatives
John C. Hull 10th Edition
Chapter 6, Problem 23 ↓

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The quoted price is $120-00$, which means $120 \frac{0}{32}$ or simply $120.00$.  Show more…

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It is April 7, 2017. The quoted price of a U.S. government bond with a $6 \%$ per annum coupon (paid semiannually) is $120-00$. The bond matures on July 27,2033 . What is the cash price? How does your answer change if it is a corporate bond?
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