Question: a) Consider a 5 1/8 bond, maturing 12/31/02 (coupon payment date is 06/30 and 12/31), 8 trading at 101:11 for settlement 8/12/02. Calculate accrued interest

a) Consider a 5 1/8 bond, maturing 12/31/02 (coupon payment date is 06/30 and 12/31), 8 trading at 101:11 for settlement 8/12/02. Calculate accrued interest and invoice price (M=100,000).

b) Consider now a 5 1/2 bond, maturing 3/31/03, trading at 102:15 for settlement 8/12/02. Calculate accrued interest and invoice price (M=100,000).

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