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(10 points) A $1000 par value 5% bond with semiannual coupons matures at par on October 15,2015 . The bond is purchased on August 29,2006

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(10 points) A $1000 par value 5% bond with semiannual coupons matures at par on October 15,2015 . The bond is purchased on August 29,2006 to yield the investor i(2)=8%. What is the purchase price (flat price)? Assume simple interest between bond coupon dates and use an exact day count. A. $826.93 B. $413.46 C. $472.53 D. $661.54 E. $1033.66

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