Question
. You initiated a transaction to purchase a 2.875% coupon 10-year Treasury Note on Wednesday 9/12/2018. The maturity date of the bond is 5/15/2026 and
. You initiated a transaction to purchase a 2.875% coupon 10-year Treasury Note on Wednesday 9/12/2018. The maturity date of the bond is 5/15/2026 and its yield to maturity is 2.966%. Please answer the following questions about this bond.
(a) How many days between the last coupon and the SDT?
(b) What is the full price of the bond on the SDT? Draw a timeline for just the current coupon period (like we did in class) and calculate the bonds full price using Method 2 in the handout, which is the method used in the text and slides).
(c) What is the accrued interest on the SDT?
(d) What is the clean price of the bond on the SDT?
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