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Q5. Based on the information in the following table, please answer the question. Suppose that you purchase the 10-year Treasury note on September 27, 2018.

Q5. Based on the information in the following table, please answer the question.

Suppose that you purchase the 10-year Treasury note on September 27, 2018. If the face value is $1,000, how much should you pay?

(Assume that the settlement date was September 28, 2018)

image text in transcribed

1) The quoted asked price on September 27 is (in percentage):

2) Accrued interest as of September 28 is (in percentage):

3) The invoice price that you should pay is:

On September 28, 2017 Rate 4.00 Maturity Aug 2025 BID 101:20 ASKED 101:22 Chg. 26 On September 28, 2017 Rate 4.00 Maturity Aug 2025 BID 101:20 ASKED 101:22 Chg. 26

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