D6) it is April 19th. The quoted price of a treasury bond with an actual/365-day count and a 2% coupon (semi-annual)is 105-18. It has a face value of 100 and pays coupons on March 1 and September 1. What, to two decimal place accuracy, is the cash price?

D6) it is April 19th. The quoted price of a treasury bond with an actual/365-day count and a 2% coupon (semi-annual)is 105-18. It has a face value of 100 and pays coupons on March 1 and September 1. What, to two decimal place accuracy, is the cash price?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter6: Bonds (debt) - Characteristics And Valuation

Section: Chapter Questions

Problem 11PROB

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Concept explainers

Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.

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