On October 5, 2015, you purchase a $ 10,000 T-note that matures on August 15, 2027 (settlement

Question:

On October 5, 2015, you purchase a $ 10,000 T-note that matures on August 15, 2027 (settlement occurs two days after purchase, so you receive actual ownership of the bond on October 7, 2015). The rate on the T-note is 4.375 percent and the current price quoted on the bond is 105.250 percent. The last payment occurred on May 15, 2015 (145 days before settlement), and the next payment will be paid on November 15, 2015 (39 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.

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...