Suppose that a Treasury coupon security is purchased on July 5 and that the last coupon payment was on May 15.

a) How many days are in the accrued interest period?

b) If the annual coupon rate for this Treasury security is 5% and the face value of the security purchased is $10 million, what is the accrued interest on July 5?

c) Assuming that the quoted price of the bond is $97.5 per $100 of face (expressed in decimal), how much did you pay when you bought the $10 million of face value on July 5?