(a) It is April 19th. The quoted price of a Treasury bond with an Actual/365 day count and 2% coupon (paid semi- annually) is 105-18. It has a face value of 100 and pays coupons on March 1 and September 1. What, to two decimal place accuracy, is the cash price? (Actual Calendar 30 day months: September, April, June, November; Remaining 31 days, except February 28 or 29 days in a leap year)

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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D3)
(a) It is April 19th. The quoted price of a Treasury bond with an Actual/365 day count and 2% coupon (paid semi-
annually) is 105-18. It has a face value of 100 and pays coupons on March 1 and September 1. What, to two
decimal place accuracy, is the cash price?
(Actual Calendar 30 day months: September, April, June, November; Remaining 31 days, except February 28 or 29
days in a leap year)
Transcribed Image Text:(a) It is April 19th. The quoted price of a Treasury bond with an Actual/365 day count and 2% coupon (paid semi- annually) is 105-18. It has a face value of 100 and pays coupons on March 1 and September 1. What, to two decimal place accuracy, is the cash price? (Actual Calendar 30 day months: September, April, June, November; Remaining 31 days, except February 28 or 29 days in a leap year)
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