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What is the accrued interest on Wednesday, February 11, 2019, for a 13.375% coupon U.S. Treasury bond maturing on May 15, 2025? How much would
What is the accrued interest on Wednesday, February 11, 2019, for a 13.375% coupon U.S. Treasury bond maturing on May 15, 2025? How much would you actually have to pay someone to buy this bond on February 11th? Assume the bid-ask price quotes in the market are 138.500 and 138:625.
2. For the same bond as in #1, suppose the ask yield is 4.85% on July 22, 2019. What price quotes would appear in the newspaper on that day, if the bid-ask spread is 0.125?
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