A regular way municipal bond trade takes place on Tuesday, August 13. Interest payment dates for the bond are February 15 and August 15. Which of the following statements are true? I. Settlement occurs prior to the interest payment date. II. Settlement occurs on the interest payment date. III. Accrued interest must be paid by the buyer. IV. No accrued interest will be paid by the buyer. (A) I and III (B) I and IV (C) II and III (D) II and IV

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