Problem F,

A Treasury Bond, 8.50% coupon, matures on 11/15/2005, closed on 11/4/88 at the price of 80-30, for delivery (settlement) on 11/7/88. Assume that there were 28 days in February. Do the required day-counts and then answer the following 3 questions.

Upon delivery, you pay ($) for the bond

a. 80.9375

b. 85.8435

c. 82.1257

d. 85.0027

The remaining number of coupons was

a. 33

b. 34

c. 36

d. 35

The Yield To Maturity (YTM) is (%)

a. 10.00

b. 11.00

c. 11.50

d. 12.00

Now assume that the above is an Agency (or Corporate) Bond. Do the required day-counts and then answer the following question: The amount of accrued interest on this bond is?

a. 4.0625

b. 4.0711

c. 4.0611

d. 4.0511