On 10.09.2017, an investor buys a 91 day certificate of deposit with a face value of £1000, an interest rate of 5%, 31 days to maturity and a yield of 5.5%. What is the clean price paid by the investor for this security?

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
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On 10.09.2017, an investor buys a 91 day certificate of
deposit with a face value of £1000, an interest rate of
5%, 31 days to maturity and a yield of 5.5%. What is
the clean price paid by the investor for this security?
Transcribed Image Text:On 10.09.2017, an investor buys a 91 day certificate of deposit with a face value of £1000, an interest rate of 5%, 31 days to maturity and a yield of 5.5%. What is the clean price paid by the investor for this security?
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