A 6-year, $1,000 face value bond issued by Taylor Tools pays interest semiannually on February 1 and August 1

A 6-year, $1,000 face value bond issued by Taylor Tools pays interest semiannually on February 1 and August 1. Assume today is October 1. What will the difference, if any, be between this bond's clean and dirty prices today?    A.  no difference B.  one month's interest C.  two month's interest D.  four month's interest E.  five month's interest Refer to section 7.5

73.

Today, June 15, you want to buy a bond with a quoted price of 98.64. The bond pays interest on January 1 and July 1. Which one of the following prices represents your total cost of purchasing this bond today?    A.  clean price B.  dirty price C.  asked price D.  quoted price E.  bid price Refer to section 7.5

74.	Which one of the following rates represents the change, if any, in your purchasing power as a result of owning a bond?    A.  risk-free rate B.  realized rate C.  nominal rate D.  real rate E.  current rate Refer to section 7.6

75.

Which one of the following statements is correct?    A.  The risk-free rate represents the change in purchasing power. B.  Any return greater than the inflation rate represents the risk premium. C.  Historical real rates of return must be positive. D.  Nominal rates exceed real rates by the amount of the risk-free rate. E.  The real rate must be less than the nominal rate given a positive rate of inflation. Refer to section 7.6