solution

A semi annual coupon paying bond is maturing on the 31st December 2022. The par value of the bond is $1,000, coupon rate is 12% and the Yield-to-Maturity is 10%. Find the clean and dirty prices, accrued interests and the Macaulay Duration of the bond on the 31st July 2021. (You have to show your workings for this question. You may use Excel to produce the spreadsheet used for your calculation, but you would have to show the spreadsheet used, either by directly producing the spreadsheet on the answer booklet file or by hand copying the tables into your answer booklet)