p*****o
发帖数: 1285 | 1 I was browsering the secondary bond market and found something I didn't
understand. Can someone help me with this?
There is a BAC bond with 6.7 coupon paid semi-annually. It matures on 3/15/
2011. My understanding is that on 3/15/2011, for each bond purchased one
can get 103.35 back ($100 principle and the last coupon of $3.35). However,
the ask price for this bond is only 100.496. That is, about 3% return in
one month, or a 30% yield. This cannot be true, but what's wrong? | s********n
发帖数: 1962 | 2 The bond is quoted by clean price. The money you will pay is the dirty
price. Google for clean and dirty price if you don't know the difference.
3/15/
one
However,
in
【在 p*****o 的大作中提到】
: I was browsering the secondary bond market and found something I didn't
: understand. Can someone help me with this?
: There is a BAC bond with 6.7 coupon paid semi-annually. It matures on 3/15/
: 2011. My understanding is that on 3/15/2011, for each bond purchased one
: can get 103.35 back ($100 principle and the last coupon of $3.35). However,
: the ask price for this bond is only 100.496. That is, about 3% return in
: one month, or a 30% yield. This cannot be true, but what's wrong?
| p*****o
发帖数: 1285 | 3 Thanks. So the dirty price should be the clean price plus the interest
accrued since last coupon payment? | s********n
发帖数: 1962 | 4 Exactly.
【在 p*****o 的大作中提到】
: Thanks. So the dirty price should be the clean price plus the interest
: accrued since last coupon payment?
|
|
