Compute the total dollar return from both capital gain/loss and coupon interest if the bond was purchased at par on issue date and held to maturity.
Term to Maturity 2 years
Par Value $1,000
Current Price (1 year to maturity) $963
Coupon Rate `5.00%
a) $63
b) $137
c) $100
d) $3.51
You purchase a bond with a coupon rate of 6.25% and a par value of $1,000. There are 53 days to the next semiannual coupon payment date and the total number of days in the period is 182. What is the accrued interest amount?
a) $31.25
b) $9.10
c) $22.15
d) $62.50