4) A bond, described in the exhibit below, is sold for a settlement on 8 April 2021. Annual Coupon rate Coupon payment frequency : monthly Maturity date* Day count convention Annual yield to maturity :12% : Your ID number + Settlement date : 30 / 360 :9% Face value :1,000 USD Calculate the dirty price (full price), clean price (flat price) and accrued interest (AI).

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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ID is 4521

4) A bond, described in the exhibit below, is sold for a settlement on 8 April 2021.
Annual Coupon rate
:12%
Coupon payment frequency : monthly
Maturity date*
Day count convention
Annual yield to maturity
: Your ID number + Settlement date
: 30 / 360
:9%
Face value
:1,000 USD
Calculate the dirty price (full price), clean price (flat price) and accrued interest (Al).
* Example if your ID number 9876, then 8 April 2021 + 9876 days = 22 April 2048
Transcribed Image Text:4) A bond, described in the exhibit below, is sold for a settlement on 8 April 2021. Annual Coupon rate :12% Coupon payment frequency : monthly Maturity date* Day count convention Annual yield to maturity : Your ID number + Settlement date : 30 / 360 :9% Face value :1,000 USD Calculate the dirty price (full price), clean price (flat price) and accrued interest (Al). * Example if your ID number 9876, then 8 April 2021 + 9876 days = 22 April 2048
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