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Question 3 (20 points) Suppose that a Treasury coupon security is purchased on July 2 and that the last semi-annual coupon payment was on April
Question 3 (20 points) Suppose that a Treasury coupon security is purchased on July 2 and that the last semi-annual coupon payment was on April 15. The next coupon date is on October 15. Answer the questions below. a) How many days are in the accrued interest period? b) How many days are in the coupon period? c) If the coupon rate for this Treasury security is 6% and the par value of the issue purchased is $5 million, what is the accrued interest? d) If the price of the bond quoted in the market on July 2 is $102 per $100 of face (clean price), what is the present value on July 2 of all the future cash flows paid on the bond position. Give this value per $100 of face
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