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Your rich uncle has just died and left you a bond with a maturity date of 3/15/2032. Hmmm, you say to yourself. There is fast

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Your rich uncle has just died and left you a bond with a maturity date of 3/15/2032. "Hmmm, you say to yourself. There is fast cash here!" You, after having grieved appropriately, decide to sell it today, which happens to be 1/24/2017. You note the bond has a 7.76 percent coupon, paid semi-annually. Checking the current Treasury yield curve shows the following: Maturity 5 Yr 7 Yr 10 Yr 20 Yr 30 Yr Yield 1.95% 2.28% 2.48% 2.79% 3.05% Using your best reasoning skills and a bond calculator from our course: a. Discuss how you will arrive at the YTM: b. Determine the dirty price of the bond: b. Determine the clean price of the bond: c. How much accrued interest will you pocket? Your rich uncle has just died and left you a bond with a maturity date of 3/15/2032. "Hmmm, you say to yourself. There is fast cash here!" You, after having grieved appropriately, decide to sell it today, which happens to be 1/24/2017. You note the bond has a 7.76 percent coupon, paid semi-annually. Checking the current Treasury yield curve shows the following: Maturity 5 Yr 7 Yr 10 Yr 20 Yr 30 Yr Yield 1.95% 2.28% 2.48% 2.79% 3.05% Using your best reasoning skills and a bond calculator from our course: a. Discuss how you will arrive at the YTM: b. Determine the dirty price of the bond: b. Determine the clean price of the bond: c. How much accrued interest will you pocket

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