5) On October 1, 2019, you purchase a $13,000 T-note that matures on November 15, 2031 (settlement occurs two days after purchase, so you receive actual ownership of the bond on October 3, 2019). The coupon rate on the T-note is 5.875 percent and the current price quoted on the bond is 105.625 percent. The last coupon payment occurred 141 days before settlement, and the next coupon payment will be paid 43 days after settlement. What is the dirty price?

Answer rating: 100% (QA)

Step 1 Calculate the Accrued Interest 1 Fraction of the year 186 365 05096 ... View the full answer