What is the accrued interest for bond

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Suppose a trader purchases a bond between coupon periods. The days between the settlement date and the next coupon period is 45. There are 90 days in the coupon period. Suppose that the bond purchased has a coupon rate of 8.0% and there are four quarterly coupon payments remaining. Face value is $100.

a) What is the dirty price of this bond if a 5.6% discount rate is used (assume that 5.6% is compounded quarterly)?

b) What is the accrued interest for this bond?

c) What is the clean price?

Reference no: EM132538850

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