How much will the bond value increase

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Suppose that a bond with par 100 is purchased between coupon periods. The days between the settlement date and the next coupon day is 82. There are 182 days in the coupon period. Suppose that the bond purchased has a coupon rate of 6.4% p.a. and there are 8 semiannual payments remaining. What is the dirty price for the bond if a 4.6% annual discount rate is used?

A 10-year bond pays annual coupon at a rate of 5% and is currently yielding 7.5%. If the yield remains unchanged, how much will the bond value increase over the next 3 years?

Reference no: EM133060267

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