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Suppose that a 5-year 6% bond is purchased between the issuance date and the first coupon date. The days between the settlement date and the
Suppose that a 5-year 6% bond is purchased between the issuance date and the first coupon date. The days between the settlement date and the next coupon period is 60. There are 90 days in the coupon period given that the coupons are paid quarterly. Suppose the discount rate is 4%.
What is the dirty price, clean price, and accrued interest?
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