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A bond with par value of 1000 has payment dates of April 15 and October 15. The nominal annual coupon rate is 6% convertible semi-annually.

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A bond with par value of 1000 has payment dates of April 15 and October 15. The nominal annual coupon rate is 6% convertible semi-annually. The bond matures at par value on October 15, 2031. On April 15, 2016 a coupon payment of 30 was made. The bond was sold 74 days later on the settlement date of June 28, 2016 to yield a nominal annual rate of 7% convertible semi-annually. There are 183 days between the coupon payment dates of April 15, 2016 and October 15, 2016. Calculate the purchase price on June 28, 2016. Select one: A. 919 B. 931 C. 907 D. 912 E. 906

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