A Treasury bond is quoted with a price of 98-25. It has a coupon of...
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Accounting
A Treasury bond is quoted with a price of 98-25. It has a coupon of 2.5% and a final maturity of 4/15/45 (and coupon payment dates of 4/15 and 10/15). The bond trades at that price on 7/1/20 on a regular day basis. The face amount of the transaction is $25 million.
a) What is the settlement date?
b) What is the dollar price for $25 million (excluding accrued interest) based on a price of 96-14?
c) What is the accrued interest?
d) What is the yield to maturity?
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