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Question: You buy one ABC bond which has a part value of $1,000 and settles on April 13th, 2016. The bond pays interest each March 15th and September 15th. The bond carries a 6.25% annual coupon rate paid semiannually and is priced at 101 as a percent of par. What will be the invoice price of this bond when the bond settles assuming the bond follows street convention with a 30/360 day count convention? Explain in detail.

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Category:- Basic Finance
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