Question: $200,000 U.S. Treasury 7 7/8% bond maturing in 2002 purchased and then settled on October 23, 1992, at a dollar price of 105-20 (this is

$200,000 U.S. Treasury 7 7/8% bond maturing in 2002 purchased and then settled on October 23, 1992, at a dollar price of 105-20 (this is the clean price) with a yield to maturity of 7.083% with the bond originally being issued at 11/15/1977. Face value per unit is $1,000.

i) Calculate the clean price of the bond issue

ii) Calculate the accrued interest of the bond issue

iii) Calculate the full price of the bond issue

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i Clean Price Calculation To calculate the clean price we first need to find out the dirty price and ... View full answer

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