Question: . a . Price a 2 0 - year, 6 % coupon, $ 1 0 0 0 par value U . S . Treasury bond

. a. Price a 20-year, 6% coupon, $1000 par value U.S. Treasury bond that yields 7%.
b. Suppose that the next coupon will be paid 88 days from today and that there are
182 days in the coupon period. What is the price of the bond?
c. Calculate the accrued interest on the bond.
d. What are the dirty and clean prices of the bond?
2. Calculate both the bond equivalent yield and the effective annual yield for a 9-year
maturity zero-coupon bond with a price of $637.80.
3. A $1,000 par value, 5% coupon bond sells for $990 and has a twenty-year maturity.
The bond is callable five years from today for a call price of $1,080. Calculate the
yield to call for the bond. You may use the approximation formula if you dont have a financial calculator

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