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Midlife Price of Bond: Between coupon payment dates. Suppose a bond is purchased with a settlement date of October 15, 2022 and the next coupon

image text in transcribed Midlife Price of Bond: Between coupon payment dates. Suppose a bond is purchased with a settlement date of October 15, 2022 and the next coupon payment is on December 1, 2022. The par amount purchased on the bond is $100,000 and its annual coupon rate is 4% paid semiannually. The maturity date of the bond is December 1 , 2025. Assume that the discount rate is 6% (annual). (a) What is the clean price of the bond on the date of purchase? (b) What is the accrued interest on the bond? Assume that the bond uses a "30/360 convention" - that is, assume that every month has 30 days, that any 6-month period has 180 days, and that there are 360 days in a year. (c) What is the dirty price of the bond? Why is calculating the dirty price important

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