Full price, Accrued Interest and Flat price in the middle of a coupon period: Consider a gilt (UK government bond) paying interest on 14 May and 14 November, maturing on 14 November 2022. The coupon on the bond is 5%, and the gilt market uses the Act/Act convention.

a. Calculate the full price if the bond is traded for settlement on 12 October 2019 at a yield to maturity of 5.5%.

b. Calculate the accrued interest if the bond is traded for settlement on 12 October 2019 at a yield to maturity of 5.5%.

c. Calculate the flat price if the bond is traded for settlement on 12 October 2019 at a yield to maturity of 5.5%.