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Evin is considering buying a bond with a $1,000 par value that has 16 semi-annual coupon payments remaining until the bond matures. The semi-annual interest
Evin is considering buying a bond with a $1,000 par value that has 16 semi-annual coupon payments remaining until the bond matures. The semi-annual interest payments are $15.00 and the annual discount rate is 6 percent. Assume that there are 180 days in the coupon period and that there are 120 days between the settlement date and the next coupon payment date. What price will Evin pay for the bond? A. The bid price plus $10 B. The bid price plus $5 C. The ask price plus $10 D. The ask price plus $5
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