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$200,000 U.S. Treasury 7 7/8% bond maturing in 2002 purchased and then settled on October 23, 1992, at a dollar price of 105-20 (this is
$200,000 U.S. Treasury 7 7/8% bond maturing in 2002 purchased and then settled on October 23, 1992, at a dollar price of 105-20 (this is the clean price) with a yield to maturity of 7.083% with the bond originally being issued at 11/15/1977. Face value per unit is $1,000.
i) Calculate the clean price of the bond issue
ii) Calculate the accrued interest of the bond issue
iii) Calculate the full price of the bond issue
Step by Step Solution
There are 3 Steps involved in it
Step: 1
i Clean Price Calculation To calculate the clean price we first need to find out the dirty price and ...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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