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Assume the original maturity a bond with face value $1000 is 10 years. The annualized yield to maturity for the bond is 7.5% and its
Assume the original maturity a bond with face value $1000 is 10 years. The annualized yield to maturity for the bond is 7.5% and its annual coupon rate is 7% being semiannually paid. The bond was issued on 7/1/2015, and bought on 11/1/2017.
Compute the following:
(1) Dirty price. (10 points)
(2) Accrued interest. (2.5 points)
(3) Clean price. (2.5 point)
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