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It is April 2 , 2 0 1 8 , and you are considering purchasing an investment - grade corporate bond that has a $
It is April and you are considering purchasing an investmentgrade corporate bond that has a $ face value and matures on June The bond's stated coupon rate is percent, and it pays on a semiannual basis that is on June and December The bond dealer's current ask yield to maturity is percent. Note: Between the last coupon date and today, there are days. Between last coupon date and the next coupon date, there are days.
a Calculate the total amount invoice price you would have to pay for this bond if you purchased the issue to settle today.
b Separate this total invoice amount into i the bond's current "flat" without accrued interest price and ii the accrued interest. Do not round intermediate calculations. Round your answers to two decimal places. Express your answers as a percentage of the bonds par value.
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