John will purchase a bond with a face value of $1,000.00. The quoted price is 123. The coupon rate is 5% and 53 days have passed since the last coupon payment. How much should John be willing to pay for the bond? Hint: Assume 182 days between coupon payments (semi-annual coupon). Round your answer to the nearest two decimals.

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A:

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A: We can determine the invoice price using the formula below:

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Q: Raghubhai

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A: