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Consider a bond which pays an 8% coupon payment that is paid semiannually. The face value is $10,000 and the clean price is $10,100. The
Consider a bond which pays an 8% coupon payment that is paid semiannually. The face value is $10,000 and the clean price is $10,100. The most recent coupon payment of $400 was paid 50 days ago. The next coupon payment will be made in 134 days.
1) Compute the accrued interest owed to the seller is settlement occurred today.
2) Compute the dirty price of the bond.
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