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Please show step by step solution. Also if PVIFA/PVIF is included to solve the problem please show how to do it on calculator. On September
Please show step by step solution. Also if PVIFA/PVIF is included to solve the problem please show how to do it on calculator.
On September 1, 2012, an investor purchases a $10,000 par T-band. 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. $8524.11
B.$9313.75
C.$10,215.11
D.$11,541.17
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