A $10,000 Bond Pays Semi-Annual Coupons at J₂ = 7

A $10,000 bond pays semi-annual coupons at j₂ = 7% every March 2 and September 2.The bond is redeemable at par and is purchased between coupon dates on May 15,2010 to yield j₂ = 6.5%.At the time of purchase there are 10 coupons remaining to be paid,plus the redemption value.What is the full (or dirty) price of the bond on May 15,2010?

A) $10,352.81
B) $10,342.74
C) $10,210.56
D) $10,201.98

Correct Answer:

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