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A bond with a face value of 100 pays an annual coupon of 12% and matures on Ad14 August 2007. It uses the actual/actual day

A bond with a face value of 100 pays an annual coupon of 12% and matures on Ad14 August 2007. It uses the actual/actual day count convention. For a settlement date of 23 December 2002 and an annual YTM of 9.75%, what is the full price? Assume an actual/actual day count.

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To calculate the full price of the bond we can use the following formula Full price Present value of all future cash flows The future cash flows of th... blur-text-image

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