What is clean price of the bond

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Reference no: EM132055639

1. A $1,000 par, semiannual-pay bond is trading for 89.14 (the dirty price), has a coupon rate of 8.75%, and accrued interest of $43.72. What is the clean price of the bond?

2. Assume the average market return over the next 50 years is expected to be 9.8%. If an investor contributes S15 thousand into an investment account today, pays 1.6% of assets under management for various fund and advisor fees, and waits for 50 years, what percentage of his final wealth has he sacrificed in fees?

Reference no: EM132055639

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