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Suppose that you are interested in buying a bond that pays interest semi-annually. It has an annual coupon of 8% with interest payable on March
Suppose that you are interested in buying a bond that pays interest semi-annually. It has an annual coupon of 8% with interest payable on March 15th and September 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 ? $1,252 $1,269 $1,278 $1,258 Question 11 6 pts What is the modified duration for a three-year, semi-annual pay, $1,000 par value, 7% coupon bond that is currently priced to yield 6.50% ? 5.18 5.35 2.56 2.67
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