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In regards to bond pricing, which of the following is/are true? 1. The difference between dirty price and clean Price is the accrued interest. 2.
In regards to bond pricing, which of the following is/are true?
1. The difference between dirty price and clean Price is the accrued interest.
2. The buyer of a bond will have to pay the seller of the bond the accrued interest to compensate the fact that the seller had own the bond for a while after the previous interst payment date. 3. When interest rate increases, the bond price for an existing bond increases because its value had gone up (higher time value of money)
A. Only 1
B. Only 3
C. 1 and 2 are true
D. 2 and 3 are true
E. All of the above
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