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Consider a T-bond. The face value is $1,000. Its coupon rate is 8%, and is paid semiannually. 61days have elapsed since last coupon. Number of
Consider a T-bond. The face value is $1,000. Its coupon rate is 8%, and is paid semiannually. 61days have elapsed since last coupon. Number of days in the coupon period is 184. You have to pay $1,080 to invest in this bond. Answer the following questions. (1) Find the accrued interest. (2) Find the clean price. (3) Find the dirty price. (4) How much should you pay when you want to buy the bond now?
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