On Monday March 20 2023 you arrange to buy a Treasury Bond that matures on Tuesday April 15 of 2025. Par Value is $1,000 and the coupon rate is 5%. This trade will settle on Tuesday March 21, 2023. Similar paper is trading at yields of 4.1% Calculate the "dirty price".

On Monday March 20 2023 you arrange to buy a Treasury Bond that matures on Tuesday April 15 of 2025. Par Value is $1,000 and the coupon rate is 5%. This trade will settle on Tuesday March 21, 2023. Similar paper is trading at yields of 4.1% Calculate the "dirty price".

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 13P

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Question

On Monday March 20 2023 you arrange to buy a Treasury Bond that matures on Tuesday April 15 of 2025.
Par Value is $1,000 and the coupon rate is 5%. This trade will settle on Tuesday March 21, 2023. Similar paper is trading at yields of 4.1%
Calculate the "dirty price".

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