Question: (Please use excel function to answer) A bond with a face value of $100,000 and coupon interest paid semi-annually at an annual rate of 8.50%

(Please use excel function to answer)

A bond with a face value of $100,000 and coupon interest paid semi-annually at an annual rate of 8.50% per annum was issued on 26 April 2013 for 4 years. Similar bonds are now selling at a yield-to-maturity of 8.01% per annum. Based on the most recent and next coupon dates, work out the accrued interest on the settlement date (12-Feb-2015). Please use Actual/Actual as the interest rate basis and leave the Calc_method as its default. (4 marks)

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