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Suppose that you are interested in buying a bond that pays interest semi-annually. It has an annual coupon of 6% with interest payable on February
Suppose that you are interested in buying a bond that pays interest semi-annually. It has an annual coupon of 6% with interest payable on February 15th and August 15th. The bond accrued interest is determined using a 30/360 day count street convention. If the bond is currently priced at $1,240, what is the invoice price for the bond using a settlement date of May 9?
A. $1,254
B. $1,268
C. $1,249
D. $1,298
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