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There is a 4 percent coupon T-note trading in the market today. Its next semi-annual coupon payment is in 53 days. After this coupon payment,
There is a 4 percent coupon T-note trading in the market today. Its next semi-annual coupon payment is in 53 days. After this coupon payment, the T-note has 9 more semiannual coupon payments and a final face value payment of $1,000. The quoted asked yield is currently 2.3 percent (compounded semi-annually). The settlement will occur in 2 days. The number of days in the current semi-annual period is 183 days. What is the full (or dirty) price and what is the clean price? Also, what accrued interest do you owe the current owner at settlement? I found accrued interest to be: 20*(128/183) = $13.989 but am having trouble with the prices.
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