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On November 15, 2013, the Treasury bond with August 15, 2043 maturity was quoted 96:26 at the bid and 96:28 at the asked. The coupon
On November 15, 2013, the Treasury bond with August 15, 2043 maturity was quoted 96:26 at the bid and 96:28 at the asked. The coupon rate of the T-bond is 3.625%. (Assume that the face value of this T-bond is $10,000.) a. What were the flat (clean) prices, i.e. the bid and asked prices, of this T-bond on that day? b. What were the invoice (dirty) prices, i.e. the bid and asked prices after incorporating the accrued interest, of this T-bond on that day?
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