you purchase a $10,000 T-note that matures on 12/31/28 (settlement occurs one day after purchase, so you receive actual ownership of the bond on 7/11/22). The coupon rate on the T-note is 2.125% and the current price quoted on the bond is 98.250%. The last coupon payment occurred on 6/30/22 (11 days before settlement) and the next coupon payment will be paid on 12/31/22 (173 days from settlement). a) Calculate the accrued interest due to the seller from the buyer at settlement b) Calculate the dirty price of this transaction
you purchase a $10,000 T-note that matures on 12/31/28 (settlement occurs one day after purchase, so you receive actual ownership of the bond on 7/11/22). The coupon rate on the T-note is 2.125% and the current price quoted on the bond is 98.250%. The last coupon payment occurred on 6/30/22 (11 days before settlement) and the next coupon payment will be paid on 12/31/22 (173 days from settlement). a) Calculate the accrued interest due to the seller from the buyer at settlement b) Calculate the dirty price of this transaction
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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Question
On 7/10/22, you purchase a $10,000 T-note that matures on
12/31/28 (settlement occurs one day after purchase, so you receive actual
ownership of the bond on 7/11/22). The coupon rate on the T-note is 2.125%
and the current price quoted on the bond is 98.250%. The last coupon payment
occurred on 6/30/22 (11 days before settlement) and the next coupon payment
will be paid on 12/31/22 (173 days from settlement).
a) Calculate the accrued interest due to the seller from the buyer at
settlement
b) Calculate the dirty price of this transaction
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