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Please explain formulas and steps used to solve, thank you! 2. You purchase a 5% coupon US Treasury bond priced at 105 maturing on 9/15/2030
Please explain formulas and steps used to solve, thank you!
2. You purchase a 5% coupon US Treasury bond priced at 105 maturing on 9/15/2030 for settlement on 10/15/2020. Thirty days later you sell the bond. Answer the following: a. How many days are there in the current coupon period? (Hint: US Treasury bonds assume actual/actual day count convention.) b. How many days are there between the last coupon payment and settlement date? C. What is the accrued interest for this bond on settlement date? 3. A 2.25% coupon US Treasury, bond maturing on 15 Feb 2021, has a YTM of 1.55%. You wish to buy this bond to with a settlement date of 14 Feb 2020. What would be the price of is priced for settlement on 18 June 2015 at a yield (YTM) of 6%. (Hint: based on an actual/actual day-count convention there are 184 days between the last coupon payment date and the next coupon payment date, and 183 days between the last coupon date and the settlement date.) a. What is the full price of this bond? b. What is the accrued interest (AI) owed to the seller of the bond on the settlement date? c. What is the clean price of the bond on settlement date? 2. You purchase a 5% coupon US Treasury bond priced at 105 maturing on 9/15/2030 for settlement on 10/15/2020. Thirty days later you sell the bond. Answer the following: a. How many days are there in the current coupon period? (Hint: US Treasury bonds assume actual/actual day count convention.) b. How many days are there between the last coupon payment and settlement date? C. What is the accrued interest for this bond on settlement date? 3. A 2.25% coupon US Treasury, bond maturing on 15 Feb 2021, has a YTM of 1.55%. You wish to buy this bond to with a settlement date of 14 Feb 2020. What would be the price of is priced for settlement on 18 June 2015 at a yield (YTM) of 6%. (Hint: based on an actual/actual day-count convention there are 184 days between the last coupon payment date and the next coupon payment date, and 183 days between the last coupon date and the settlement date.) a. What is the full price of this bond? b. What is the accrued interest (AI) owed to the seller of the bond on the settlement date? c. What is the clean price of the bond on settlement date Step by Step Solution
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