You Are Buying a Bond at a Quoted Price of $887

question 61

Multiple Choice

You are buying a bond at a quoted price of $887. The bond has a 8.0 percent coupon and pays interest semiannually on February 1 and August 1. What is the dirty price of this bond if today is April 1? Assume a 360-day year.

• A) $896.17
• B) $900.33
• C) $913.67
• D) $938.50
• E) $942.00

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Definitions:

Monopolistic Competitor

A monopolistic competitor is a firm that has many competitors in a market but differentiates its product or service enough to have some control over its price.

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Monopolistic Competitor

A firm that operates in a market structure characterized by many competitors offering products or services that are similar but not identical, allowing for some degree of market power.