Question: Eric is considering buying a bond with a $ 1 , 0 0 0 par value that has 1 6 semi - annual coupon payments

Eric is considering buying a bond with a $1,000 par value that has 16 semi-annual coupon payments remaining until the bond matures. The semi-annual interest payments are $15.00, and the annual discount rate is 6 percent. Assume that there are 180 days in the coupon period and that there are 120 days between the settlement date and the next coupon payment date. The price Eric will most likely pay for the bond is a combination of:
Question 24 options:
The bid price plus $10.
The ask price plus $5.
The bid price plus $5.
The ask price plus $10.

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