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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 2042 Coupon rate 10%
The following data relate to a corporate bond which pays coupons semi-annually: Settlement date 01 March 2022 Maturity date 31 December 2042 Coupon rate 10% Yield to maturity 9% Face value $1,000 Percentage of face value paid back to the investor on maturity 100% Using the above data, calculate i. The flat price of the bond ii. Accrued interest iii. Invoice price of the bond Note: Show the assumptions, if any, you made in your calculations
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