Question: Question 3 (16 marks) a) $200,000 U.S. Treasury 77/8% bond maturing in 2002 purchased and then settled on October 23, 1992 , at a dollar

Question 3 (16 marks) a) $200,000 U.S. Treasury 77/8% bond maturing

Question 3 (16 marks) a) $200,000 U.S. Treasury 77/8% bond maturing in 2002 purchased and then settled on October 23, 1992 , at a dollar price of 10520 (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 (10 marks) Question 3 (16 marks) a) $200,000 U.S. Treasury 77/8% bond maturing in 2002 purchased and then settled on October 23, 1992 , at a dollar price of 10520 (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 (10 marks)

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