Question
On July 5, 2020, you purchase a $100,000 T-note that matures on July 15, 2031 (settlement occurs One day after purchase, so you receive actual
On July 5, 2020, you purchase a $100,000 T-note that matures on July 15, 2031 (settlement occurs One day after purchase, so you receive actual ownership of the bond on July 6, 2020). The last coupon payment occurred on February 15, 2020 (144 days before settlement), and the next coupon payment will be paid on August 15, 2019 (40 days from settlement). The coupon rate on the T-note is 4.750 percent and the current price quoted on the bond is 103.250%. (5 points)
a) Find the accrued interest
b) Find the dirty price for this transaction
PLEASE SHOW WORK
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