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Question 1: Clean Price and Dirty Price The prices and yields for hypothetical on-the-run Treasury's on October 13, 2020 is shown below: U.S. Treasury Quotes,
Question 1: Clean Price and Dirty Price The prices and yields for hypothetical on-the-run Treasury's on October 13, 2020 is shown below: U.S. Treasury Quotes, Thursday, October 13, 2020 Treasury issue Prices and yields for on-the-run-treasuries MATURITY COUPON PRICE CHG 10/15/2020 1.625 100.0220 0.0080 01/31/2020 1,375 100.1360 0.0020 04/15/2021 1.500 100.0760 0.0020 11/15/2021 2.000 102.0360 0.0040 02/15/2022 1.375 103.0500 unch 09/30/2023 1.2550 103.2860 0.0020. 08/31/2024 1.875 106.1740 0.0080 You decided to purchase the 3-year treasury note with a $10,000 face value yesterday (10/13/2020). The last interest payment on the treasury note was made on 09/30/2020. That is, the asset was purchased 13 days since the last interest payment. The settlement occurs on today (Wednesday, October 14, 2020). a. What is the clean price of the 3-year Treasury? b. Calculate the accrued interest due to the seller. c. Calculate the dirty price of this transaction
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