Question: A managed fund is to restructure its balance sheet through the sale of $15 million of Treasury bonds that mature on 30 September 2024. The

A managed fund is to restructure its balance sheet through the sale of $15 million of Treasury bonds that mature on 30 September 2024. The bonds pay a fixed half-yearly coupon of 5.50 per cent per annum. Settlement date for the sale is 20 July 2019. Current yields on Treasury bond are 5.25 per cent per annum. Calculate the price at which the bonds will be sold.

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