Calculate the clean dollar price of the bond

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Reference no: EM131967621

Assume a Aa1 rated, $25,000 par value 6% coupon with 10 years to maturity bond is being offered. The yield on similar 10 year Aa1 rated paper is currently 4.0%.

a. Calculate the full market value of the bond.

b. Calculate the clean dollar price of the bond.

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Reference no: EM131967621

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