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Question 10: The following shows the information of a government bond traded in the secondary market. Type of Bond: Government bond, Issue DateJun. 15,2007, Date

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Question 10: The following shows the information of a government bond traded in the secondary market. Type of Bond: Government bond, Issue DateJun. 15,2007, Date of Purchase: Jun.15,2009 Maturity Date: Jun. 15,2012, Coupon Rate: 4.4% payable semiannually, Yield Rate: 4.0% convertible semiannually, and Coupon Dates: Jun.15 and Dec.15. Assume that the redemption value of the bond is the same as thef ace value, which is $100. (a) Draw the cash-flow diagram of the coupon-paying bond. (b) Find the purchase price of the bond immediately after its 4th coupon payment on Jun. 15,2009. (c) On Aug. 14,2009, an investor purchased the bond to yield 3.8% convertible semiannually. Find the purchase price, accrued interest and the quoted price of the bond at the date of purchase, based on a face value of 100. on face value of 100 theqoed price of the bond at ihe

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