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Consider that a 7-year 9% bond with monthly payments that is purchased before the first coupon date. The number of days between the settlement date
Consider that a 7-year 9% bond with monthly payments that is purchased before the first coupon date. The number of days between the settlement date and the next coupon date is 10. Assume there are 30 days in the coupon period given that the coupons are paid monthly. Suppose the discount rate is 10%.
What is the accrued interest for this bond in dollars?
What is the bond price at t=0?
What is the dirty price?
What is the clean price?
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