Question
On October 5, 2013, you purchase a $10,000 T-note that matures on August 15, 2024 (settlement occurs two days after purchase, so you receive actual
On October 5, 2013, you purchase a $10,000 T-note that matures on August 15, 2024 (settlement occurs two days after purchase, so you receive actual ownership of the bond on October 7, 2013). The coupon rate on the T-note is 4.375 percent and the current price quoted on the bond is 105:08 (or 105.25% of the face value of the T-note). The last coupon payment occurred on May 15, 2013 (145 days before settlement), and the next coupon payment will be paid on November 15, 2013 (39 days from settlement). ( LG 6-2 )
a-Calculate the accrued interest due to the seller from the buyer at settlement.
b-Calculate the dirty price of this transaction
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