Question
On Feb 20, 2015, you are offered to buy a U.S. treasury note. Here are the terms of the note: 1. The note has face
On Feb 20, 2015, you are offered to buy a U.S. treasury note. Here are the terms of the note:
1. The note has face value of $100,000 and a 6.5% coupon rate. The note will mature on Oct 15, 2020.
2. The semi-annual coupon is paid on April 15 and October 15 of each year. The last interest payment
was Oct 15, 2014. The next interest payment is April 15, 2015.
What will be the accrued interest if you buy the note on Feb 20, 2015?
Suppose the clean price of this note is $107,152, what will be invoice price of the note on Feb 20, 2015?
What is the notes annualized yield to maturity using XIRR function using the invoice price?
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