You are a risk-averse investor and prefer bond investment over stock investment. You purchase bonds from secondary market worth $220 million of a 5.2% January -2020 Treasury notes from Alfalah securities at an offer of 97 ^18/32. Suppose that the last coupon was paid in January 5th and the next coupon date is June 5th. You are standing at March 31^st March. This customer pays the dealer the clean price plus the accrued interest the next day against delivery. You finance the purchase with a seven day repo with ABD securities. The dealer quotes the customer a repo rate of 3.3 % and a bid price of 97 ^12/32 for these notes. The dealer requires a 2.5 percent haircut.

Calculate

Clean and Dirty Price of the Bond

Interest that you will pay to ABD securities when the transaction ends.