Question
3. The following corporate bond with the par value of $1,000 is sold for settlement on 16 June 2020. Annual Coupon rate: 5% Coupon Payment
3. The following corporate bond with the par value of $1,000 is sold for settlement on 16 June 2020. Annual Coupon rate: 5% Coupon Payment Frequency: Semi-annual Interest Payment Dates: 10 April and 10 October Maturity Date: 10 October 2022 Current Yield-to-Maturity: 4% (1) What is the full price of this bond when it settles on 16 June 2020? (2) What is the accrued interest of this bond on the settlement date of 16 June 2020? (3) What is the clean price of this bond on the settlement date of 16 June 2020? (4) If this is a Treasury note, what are the full price, accrued interest, and clean price?
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