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Suppose that a bond is purchased between coupon periods. The number of days between the settlement date and the next coupon period is 115. There
Suppose that a bond is purchased between coupon periods. The number of days between the settlement date and the next coupon period is 115. There are 183 days in the current coupon period. The purchased bond has a coupon rate of 7.4%, interest is compounded semi-annually, and there are 4 semiannual coupon payments remaining. The appropriate discount rate for this bond is 5.6%. What is the accrued interest (Al) on settlement date? 0 0
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