How much is the accrued interests

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Reference no: EM132978542

Problem - You sell a corporate bond with an invoice price of $988. The bond has a coupon rate of 7%, and there are 2 months to the next semiannual coupon date.

a. How much is the accrued interests?

b. What is the clean price of the bond?

c. 'The yield to maturity must be greater than the current yield.' Comment on this argument.

Reference no: EM132978542

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