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Explain what we mean by accrued interest for a bond that is traded in a...

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Finance

Explain what we mean by accrued interest for a bond that is traded in a market. Suppose a bond is trading at a yield of 4.7%, and that the bond has a coupon rate of 5%, paid annually. The bond has maturity 3 years and 200 days, so that a coupon payment is due in 200 days; 1 year and 200 days; 2 years and 200 days; and 3 years and 200 days. The discount factor (1 1.047) is equal to 0.97515 when = 200/365 and it is equal to 0.97945 when = (365 200)/365. What is the quoted price for the bond?

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