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A 5% coupon U.S. treasury note pays interest on June 1st and December 31 and is traded for settlement on August 1st. Now this note

A 5% coupon U.S. treasury note pays interest on June 1st and December 31 and is traded for settlement on August 1st. Now this note has three years to maturity and the market interest rate is 5%. how much is the accrued interest and invoice price if the FV is $1000?

A. 25 and 1000

B. 8.33 and 1008.33 (correct answer)

C. 10 and 1010

D. None of the above

would like to know how it was worked out, thank you!

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