you purchase a $10,000 T-note that matures on 12/31/28 (settlement occurs one day after purchase, so you receive actual ownership of the bond on 7/11/22). The coupon rate on the T-note is 2.125% and the current price quoted on the bond is 98.250%. The last coupon payment occurred on 6/30/22 (11 days before settlement) and the next coupon payment will be paid on 12/31/22 (173 days from settlement). a) Calculate the accrued interest due to the seller from the buyer at settlement b) Calculate the dirty price of this transaction
you purchase a $10,000 T-note that matures on 12/31/28 (settlement occurs one day after purchase, so you receive actual ownership of the bond on 7/11/22). The coupon rate on the T-note is 2.125% and the current price quoted on the bond is 98.250%. The last coupon payment occurred on 6/30/22 (11 days before settlement) and the next coupon payment will be paid on 12/31/22 (173 days from settlement). a) Calculate the accrued interest due to the seller from the buyer at settlement b) Calculate the dirty price of this transaction
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter10: Long-term Liabilities
Section: Chapter Questions
Problem 10.3E: Issue Price The following terms relate to independent bond issues: 500 bonds; $1,000 face value; 8%...
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Question
On 7/10/22, you purchase a $10,000 T-note that matures on
12/31/28 (settlement occurs one day after purchase, so you receive actual
ownership of the bond on 7/11/22). The coupon rate on the T-note is 2.125%
and the current price quoted on the bond is 98.250%. The last coupon payment
occurred on 6/30/22 (11 days before settlement) and the next coupon payment
will be paid on 12/31/22 (173 days from settlement).
a) Calculate the accrued interest due to the seller from the buyer at
settlement
b) Calculate the dirty price of this transaction
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