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Can you explain on how in accrued interest got 2 divided by 6 Suppose you buy a bond with a 12% annual coupon, payable semiannually.
Can you explain on how in accrued interest got 2 divided by 6
Suppose you buy a bond with a 12% annual coupon, payable semiannually. On the day you buy it, the next coupon is due in four months. If the bond's quoted price (i.e., its clean price) is $1,060, what is accrued interest and the price you actually pay (i.e., its dirty price) for this bond? Accrued interest =($60)x(2/6)=$20 Dirty Price=$1,060+$20=$1,080Step by Step Solution
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