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A 10-year bond with a face value of $4000 is redeemable at par and earns interest at j 1 j1 = 11.5%. If the yield

A 10-year bond with a face value of $4000 is redeemable at par and earns interest at j1j1 = 11.5%. If the yield rate is j1j1 = 10.5%, find the full (or dirty) price of the bond 4 months after the payment of coupon number 4.

Use compound interest for points in time between coupon payments.

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