A $25 000, 10% bond redeemable at par on December 1, 2025, is purchased on September 25,

Question:

A $25 000, 10% bond redeemable at par on December 1, 2025, is purchased on September 25, 2014, to yield 7.6% compounded semi-annually. Bond interest is payable semi-annually.
(a) What is the cash price of the bond?
(b) What is the accrued interest?
(c) What is the quoted price?

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