A Treasury note with a 6% coupon, semiannual payments, and par value of $1,000 yields 3.2% and has four payments left to maturity. There are 101 days until the next coupon payment and 182 days between coupons. What is the clean price of the note (i.e., price net of accrued interest)?

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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A Treasury note with a 6% coupon,
semiannual payments, and par value of
$1,000 yields 3.2% and has four payments left
to maturity. There are 101 days until the next
coupon payment and 182 days between
coupons. What is the clean price of the note
(i.e., price net of accrued interest)?
Transcribed Image Text:A Treasury note with a 6% coupon, semiannual payments, and par value of $1,000 yields 3.2% and has four payments left to maturity. There are 101 days until the next coupon payment and 182 days between coupons. What is the clean price of the note (i.e., price net of accrued interest)?
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