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Chapter 12 Financial Planning Exercise 10 Clean and dirty bond prices You have decided to sell a 6 percent semiannual coupon bond two months after
Chapter 12 Financial Planning Exercise 10 Clean and dirty bond prices You have decided to sell a 6 percent semiannual coupon bond two months after the last coupon payment. The bond is currently selling for $924.00. Answer the following questions about the bond. Assume that the par value of the bond is $1,000. Round your answer to nearest cent. a. What is the clean price of the bond? $ b. What is the dirty (full) price of the bond? $ c. Explain how the clean and dirty prices of the bond are relevant to the buyer of the bond
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