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.

a) What is the yield rate for the bond?

b) Assuming the yield rate doesn't change, what is the rst coupon date on

which the bond will be worth more than $950.00?

c) Using an ACT/ACT daycount convention, what is the first day on which

the bond's dirty price exceeds $950.00 (again, assuming no change in yield)?

d) What is the dirty price on that day? What is the accrued interest? What

is the clean price?