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Anurag buys a 5 year, $1,000 face value bond with a 3% coupon. The bond's issue date is January 1, 2020 and it pays semi-annual
Anurag buys a 5 year, $1,000 face value bond with a 3% coupon. The bond's issue date is January 1, 2020 and it pays semi-annual coupons on January 1 and July 1 each year. Anurag pays $902.17 What is the clean price of the bond on July 17, 2022 (using the linear approximation)? (Hint: start by finding the yield, then find the price on July 1, 2022, then find the dirty price (using the linear approximation, then find the clean price). O a. $951.39 O b. $957.80 Oc. $948.78 O d. $947.92 O e. $950.09
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