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( 1 0 points total ) Consider a bond with $ 1 0 0 0 F V , an annual coupon rate of 6 %
points total Consider a bond with $ an annual coupon rate of an annual yield to maturity YTM of and coupons remaining until maturity. Coupons are issued every months, and the next coupon is due in exactly months.
a points What is the CLEAN price of this bond today? Assume all months are equal length. Show your work, and round your answer to decimal places eg
Clean Price $
b points Carefully explain why your calculated clean price in part a above is different than the price of this bond on the date of the last coupon payment. Your response should justify why the clean price is either higher or lower than the bond price on the last coupon date, assuming no difference in yieldtomaturity YTM
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