Assume a $1,000 par value for the 2039 May 15, 4.25% coupon Treasury bond for...

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Assume a $1,000 par value for the 2039 May 15, 4.25% coupon Treasury bond for the date February 7, 2022 presented below. (Note that this bond has semi-annual coupon payments). Monday, February 7, 2022 Chg Maturity 5/15/2039 Coupon 4.25 Bid 130.361 Asked 130.701 Asked yield 2.118 a.) Using the above dealer price quote, calculate and verify the Asked (Price) presented above using the discounting and compounding techniques we reviewed in class. You may use Excel functions as a check on your answer but not to answer the question. Assume there are 181 days between coupon payments. Is this the clean or dirty price? (Note - you should be able to match the dealer-quoted price within $0.10 per $1,000 par). b.) Using the Excel Yield function and dealer-quoted price of the bond from Part A, calculate and verify the Asked Yield from Part A. (Note - using a day count basis of 1 you should be able to match the yield within 1 basis point). Assume a $1,000 par value for the 2039 May 15, 4.25% coupon Treasury bond for the date February 7, 2022 presented below. (Note that this bond has semi-annual coupon payments). Monday, February 7, 2022 Chg Maturity 5/15/2039 Coupon 4.25 Bid 130.361 Asked 130.701 Asked yield 2.118 a.) Using the above dealer price quote, calculate and verify the Asked (Price) presented above using the discounting and compounding techniques we reviewed in class. You may use Excel functions as a check on your answer but not to answer the question. Assume there are 181 days between coupon payments. Is this the clean or dirty price? (Note - you should be able to match the dealer-quoted price within $0.10 per $1,000 par). b.) Using the Excel Yield function and dealer-quoted price of the bond from Part A, calculate and verify the Asked Yield from Part A. (Note - using a day count basis of 1 you should be able to match the yield within 1 basis point)

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