Question
You sell a 2.80% coupon on June 15, 2044, IBM bond on August 4th, 2023 (trade date). The broker/dealer is buying it from you at
You sell a 2.80% coupon on June 15, 2044, IBM bond on August 4th, 2023 (trade date). The broker/dealer is buying it from you at a stated return of 3.20% (say 23 bps over the 30 years Treasury). a. If you are selling $1mm (par value) of bonds, how much money will get put into your account as a result of the sale (to the penny)? b. What is the clean price that the broker/dealer would quote you?
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Financial Times Guide To The Financial Markets
Authors: Glen Arnold
1st Edition
0273730002, 978-0273730002
