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The following data relate to a corporate bond which pays coupons semi-annually: Settlement date 01 March 2022 Maturity date 31 December 2045 Coupon rate 9%
The following data relate to a corporate bond which pays coupons semi-annually:
Settlement date 01 March 2022
Maturity date 31 December 2045
Coupon rate 9%
Yield to maturity 10%
Face value $1,000
Percentage of face value paid back to the investor on maturity 100%
Using the above data, calculate
1. The flat price of the bond
2. Accrued interest
3. The invoice price of the bond
Note: Show the assumptions, if any, you made in your calculations.
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