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You Purchase a Bond with an Invoice Price of $1,120

Question 112

Multiple Choice

You purchase a bond with an invoice price of $1,120.The bond has a coupon rate of 8.5 percent,semiannual coupons,and there are three months to the next coupon date.What is the clean price of the bond?


A) $1,086.35
B) $1,098.75
C) $1,105.20
D) $1,132.50
E) $1,157.50

Correct Answer:

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