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4 . On October 5 , 2 0 2 2 , you purchase a $ 1 0 , 0 0 0 T - note that

4. On October 5,2022, you purchase a $10,000 T-note that matures on August 15,2031(settlement occurs one day after purchase, so you receive actual ownership of the bond on October 6,2022). The coupon rate on the T-note is 4.375 percent and the current price quoted on the bond is 105.250 percent. The last coupon payment occurred on May 15,2022(144 days before settlement), and the next coupon payment will be paid on November 15,2022(40 days from settlement).(LG 6-2) a. Calculate the accrued interest due to the seller from the buyer at settlement. b. Calculate the dirty price of this transaction. Supplemental Problem Bond Quotation. Use the following February 11,2002, Wall Street Journal quotation for AT&T Corp. Which of the following statement is false? (1)The closing price of the bond with the shortest time to maturity is $1,000.(2)The annual coupon for the bond maturing in 2018 is $90.(3) The price on the day before this quotation (February 9) for the AT&T bond maturing in 2024 is $1,075 per bond contract. (4)The current yield on the AT&T bond maturing in 2004 is 7.125 percent. (5)The AT&T bond maturing in 2004 has a yield to maturity of less than 7.125 percent. Bonds Current Yield Volume Close ATT 9s 18?10117 Net Change ATT 51/803+.25?5100 ATT 71/804+.75?193104.125 ATT 81/824+.25?39107.375-.125

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