Question
I need assistance on this assignment: Assume a $1,000 par value for the 2042 May 15, 3.00% coupon Treasury bond for the date February 25,
I need assistance on this assignment: Assume a $1,000 par value for the 2042 May 15, 3.00% coupon Treasury bond for the date February 25, 2021 presented below. (Note that this bond has semi-annual coupon payments). Using the above dealer price quote, calculate and verify the Asked (Price) presented above using the discounting and compounding techniques we reviewed in class. You may use Excel functions as a check on your answer but not to answer the question. Assume there are 181 days between coupon payments. Is this the clean or dirty price? (Note the price you calculate may be up to $0.05 off per $1,000 par).
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