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An Investor Purchases a $1,000, 8% Coupon Rate Treasury Note

Question 44

Multiple Choice

An investor purchases a $1,000, 8% coupon rate Treasury note 100 days after the last interest payment and 82 days before the next interest payment. She


A) will receive $21.98 of accrued interest.
B) must pay $43.96 in accrued interest.
C) will have no liability for accrued interest as the market price adjusts.
D) must also pay $21.98 of accrued interest.

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