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) Use the information below to answer questions below (5 Points) The prices and yields for on-the-run Treasurys were collected from the Wall Street Journal

) Use the information below to answer questions below (5 Points)

The prices and yields for on-the-run Treasurys were collected from the Wall Street Journal on July 27 10, 2020

U.S. Treasury Quotes. Thursday, July 27, 2020

Treasury issue

Prices and yields for on-the-run-treasuries

MATURITY

COUPON

Price

CHG

10/15/2019

1.0000

99.3160

0.0080

06/30/2020

1.2500

99.3120

0.0020

07/27/2020

1.5000

99.3120

0.0020

06/30/2022

1.0000

101.2940

0.0040

06/30/2023

1.3750

102.0500

unch.

06/30/2024

3.1240

106.2860

0.0020

07/27/2024

3.2500

107.3060

0.0080

You decided to purchase a 4-year Treasury with a $100,000 face on July 27, 2020. But settlement will occur on July, 28 2020. The last interest payment on the asset was made on 06/30/2020. (Hint: Assume a 181-day coupon period)

a. What is the clean price of the 5-year Treasury? (2 points)

b. Calculate the accrued interest due to the seller. (2 points)

c. Calculate the dirty price of this transaction. (2 points)

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