Question
An investor purchases $10,000 face amount of the U.S. Treasury 2 7/8 (coupon rate = 2.875%) of August 15, 2019, for settlement on June 1st,
An investor purchases $10,000 face amount of the U.S. Treasury 2 7/8 (coupon rate = 2.875%) of August 15, 2019, for settlement on June 1st, 2014. The last coupon paid on February 15, 2014 and the next coupon pays on August 15, 2014. If the invoice price is $10,043.19, what is the bond's quoted price at settlement?
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Step: 1
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
13th edition
1439078106, 111197375X, 9781439078105, 9781111973759, 978-1439078099
