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Business, 08.04.2020 22:42 SuBzErO24

On October 5, 2019, you purchase a $10,000 T-note that matures on August 15, 2031 (settlement occurs one day after purchase, so you receive actual ownership of the bond on October 6, 2019). The coupon rate on the T-note is 4.375 percent and the current price quoted on the bond is 105.250 percent. The last coupon occurred on May 15, 2019 (144 days before settlement), and the next coupon payment will be paid on November, 2019 (40 days from settlement).

a) Calculate the accrued interest (per face value of the bond) due to the seller from the buyer at settlement.

b) Calculate the dirty price (per face value of the bond) of this transaction . Leave your final answer in 3 decimal places.

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On October 5, 2019, you purchase a $10,000 T-note that matures on August 15, 2031 (settlement occurs...

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