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A coupon bond is sold from one investor to another two months after a coupon payment date. Regarding accrued interests, Which of the following is
A coupon bond is sold from one investor to another two months after a coupon payment date. Regarding accrued interests, Which of the following is true:
The seller will deduct two months interest from the bonds price.
The purchaser must pay the seller two months interest.
The firm that issued the bond will immediately pay the seller two months interest.
The firm that issued the bond will immediately pay the purchaser two months interest.
The sale of the bond will not take place until the next coupon payment date.
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