How would things change if the face value is 100, the redemption value is 110, the coupon rate is 8%, and the yield is 8%? Would the price be 100 or 110?
If C does not equal F, then you would want to calculate the price at both the latest and earliest dates and compare them. See which price is better (lower) and choose that as your answer.
How would things change if the face value is 100, the redemption value is 110, the coupon rate is 8%, and the yield is 8%? Would the price be 100 or 110?
If C does not equal F, then you would want to calculate the price at both the latest and earliest dates and compare them. See which price is better (lower) and choose that as your answer.