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Consider a fixed rate bond, with 1 0 0 face value, paying a coupon of 5 % on a semi - annual basis trading

Consider a fixed rate bond, with £100 face value, paying a coupon of 5% on a semi-annual basis trading at a dirty price of £105. Suppose that the bond is purchased between coupon periods where the number of days between the purchase date and the next coupon period is 100. Calculate the clean price of the bond assuming an ACT/360 day count convention.

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Given Face value F 100 Coupon rate C 5 Semiannual coupon payment C F 2 250 Dirty price DP 105 Da... blur-text-image

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