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Exercise 1 . 1 On 1 2 / 0 4 / 0 1 consider a fixed - coupon bond whose features are the following: face

Exercise 1.1 On 12/04/01 consider a fixed-coupon bond whose features are the following:
face value: $1,000
coupon rate: 8%
coupon frequency: semiannual
maturity: 05/06/04
What are the future cash flows delivered by this bond?
Exercise 1.2 Consider the same bond as in the previous exercise. We are still on 12/04/01.
1. Compute the accrued interest, taking into account the Actual/Actual day-count
basis.
2. Same question if we are now on 09/06/02.

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