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On Monday March 6, 2023 you purchase a $1,000 Treasury bond that matures on May 15, 2031 (settlement occurs one day after purchase, so you receive actual ownership of the bond on Tuesday March 7, 2023). The coupon rate is 4.000 percent and the current price quoted on the bond is 97.838 percent of par (in dollar terms, $978.38). The last coupon payment occurred on November 15, 2022, and the next coupon payment will be paid on May 15, 2023. Calculate the accrued interest due to the seller from the buyer at settlement. Hint: do NOT round your intermediate steps

On Monday March 6, 2023 you purchase a $1,000 Treasury bond that matures on May 15, 2031 (settlement occurs one day after purchase, so you receive actual ownership of the bond on Tuesday March 7, 2023). The coupon rate is 4.000 percent and the current price quoted on the bond is 97.838 percent of par (in dollar terms, $978.38). The last coupon payment occurred on November 15, 2022, and the next coupon payment will be paid on May 15, 2023. Calculate the accrued interest due to the seller from the buyer at settlement. Hint: do NOT round your intermediate steps

Essentials Of Investments
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
Section: Chapter Questions
Problem 1PS
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On Monday March 6, 2023 you purchase a $1,000 Treasury bond that matures on May 15, 2031 (settlement occurs one day after purchase, so you receive actual ownership of the bond on Tuesday March 7, 2023). The coupon rate is 4.000 percent and the current price quoted on the bond is 97.838 percent of par (in dollar terms, $978.38). The last coupon payment occurred on November 15, 2022, and the next coupon payment will be paid on May 15, 2023. Calculate the accrued interest due to the seller from the buyer at settlement. Hint: do NOT round your intermediate steps
Transcribed Image Text:On Monday March 6, 2023 you purchase a $1,000 Treasury bond that matures on May 15, 2031 (settlement occurs one day after purchase, so you receive actual ownership of the bond on Tuesday March 7, 2023). The coupon rate is 4.000 percent and the current price quoted on the bond is 97.838 percent of par (in dollar terms, $978.38). The last coupon payment occurred on November 15, 2022, and the next coupon payment will be paid on May 15, 2023. Calculate the accrued interest due to the seller from the buyer at settlement. Hint: do NOT round your intermediate steps
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