Question: A Treasury Bond with a 5 % coupon is issued on March 4, 2003. The first coupon date is May 15, 2003. This bond is
A Treasury Bond with a 5 % coupon is issued on March 4, 2003. The first coupon date is May 15, 2003. This bond is semiannual coupon bond with par value $1,000. Half of a year is 182 days.
A. What is the coupon paid on the first coupon date?(There are 72 days between March 4, 2003 and May 15, 2003 )
B. What is the accrued interest for a trade settled on March 8, 2003?
C. On May 19, 2003, this bond is 100-6. What is the actual purchase price for this bond? (Note : one tick of Treasury note is $0.3125 for $1,000 par value)
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