Considering a Treasury Bond with a face value of USD $1,000,000,000, issued on February 1, 2005 for 15 years that pays annual coupons at a rate of 8% and base 365 (years with 365 days, including leap years), answer the next questions:

1. When acquiring the title on October 28, 2016 with a purchase IRR of 6% E.A., what is the Clean Price of the transaction for each USD $100 of nominal value? a. 111.622% b. 100,000% c. 106.930% d. 105.726%

2. What is the dirty transaction price per $100 of face value? a. 105.726% b. 106.930% c. 111.622% d. 100,000%

3. What is the accrued interest (transaction coupon)? a. 8% b. 5.9178% c. 6.00% d. 5.8959%

4. What is the present value on 10/28/2016 of the coupon paid on 02/01/2018, in millions of USD? a. $72,589,754 b. $74,323,873 c. $78,783,305 d. $80,000,000

5. How much is the duration of the bond in years? 6. How much is the convexity of the bond per $100 of face value?