Question: Bond A
Face value: $500,000,000
Coupon: 3% p.a. payable quarterly Repayment:
12 quarterly payments commencing 15 March 2015
Final maturity: 15 December 2017
Yield: The yield required by investors for a 2-year average life bond rated BB by Standard & Poors and Ba2 by Moody's is 2.75%
What is the "dirty" value of Bond A on 31 December 2015?