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Please show solution. If PVIFA/PVIF is used please explain how to solve PVIFA/PVIF on calculator. On September 1, 2012, an investor purchases a $10,000 par
Please show solution. If PVIFA/PVIF is used please explain how to solve PVIFA/PVIF on calculator.
On September 1, 2012, an investor purchases a $10,000 par T-bond. The quoted asked price of the bond is 91,9708. The coupon rate is 6 percent. Delivery (settlement) for the purchase occurs 70 days after the last coupon payment. Assume 2 settlement days. There are 110 days between coupon payments. The asked yield is 7 percent. The dirty price of the bond is?
A. $8,524.11
B. $9,313.75
C. $10,215.11
D. $11, 541.17
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