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An investor purchases the following bonds for a portfolio and the settlement dates are given for each transaction. For each bond position calculate i) the
An investor purchases the following bonds for a portfolio and the settlement dates are given for each transaction. For each bond position calculate i) the accrued interest to the settlement date and ii) the total purchase price (clean price plus accrued interest) paid by the investor. a) $1 million par value of Pepsico 2.75% USD bond due April 30, 2025. The investorbought the bonds in the market at a clean price of 108.271 per bond. The bond has a 30/360 day count convention and settles on Jan 26, 2021. b) $1 million par value of a US treasury bond: To 5/8% bond due August 15th, 2030. The investor bought the bonds in the market at a clean price of 95-28+ per bond. The bond has actual/actual day count convention and settles on Jan. 25, 2021. An investor purchases the following bonds for a portfolio and the settlement dates are given for each transaction. For each bond position calculate i) the accrued interest to the settlement date and ii) the total purchase price (clean price plus accrued interest) paid by the investor. a) $1 million par value of Pepsico 2.75% USD bond due April 30, 2025. The investorbought the bonds in the market at a clean price of 108.271 per bond. The bond has a 30/360 day count convention and settles on Jan 26, 2021. b) $1 million par value of a US treasury bond: To 5/8% bond due August 15th, 2030. The investor bought the bonds in the market at a clean price of 95-28+ per bond. The bond has actual/actual day count convention and settles on Jan. 25, 2021
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