1. Calculate the dirty price and the clean price for a 5% coupon Treasury that pays interest on 2/15 and 8/15 of each year, matures on 8/15/2018 and settles on 9/20/2015. Show all calculations and include six decimal places.

Assume the following Treasury spot rate curve for this problem.

Date Period Years Spot Rate

2/15/2016 1 0.5 2.0000%

8/15/2016 2 1.0 2.0500%

2/15/2017 3 1.5 2.1014%

8/15/2017 4 2.0 2.2043%

2/15/2018 5 2.5 2.2556%

8/15/2018 6 3.0 2.3604%