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It Is May 1

Question 4

Multiple Choice

It is May 1.The quoted price of a bond with an Actual/Actual (in period) day count and 12% per annum coupon (paid semiannually) in the United States is 105.It has a face value of 100 and pays coupons on April 1 and October 1.What is the cash price?


A) 106.00
B) 106.02
C) 105.98
D) 106.04

Correct Answer:

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