Question
You purchase $1,000,000 face of a 1.75% TIP maturing 1/15/28 with a 2/18/20 settle for $114- 22. The index ratio is 1.22709. There are 34
You purchase $1,000,000 face of a 1.75% TIP maturing 1/15/28 with a 2/18/20 settle for $114- 22. The index ratio is 1.22709. There are 34 days of accrued interest in a coupon period of 182 days.
(a) What is the accrued interest? (b) What is the invoice amount paid for the bond?
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Introduction To Finance Markets, Investments, And Financial Management
Authors: Ronald W Melicher, Edgar Norton
13th Edition
0470128925, 9780470128923
