Use the information below to answer questions below (5 Points) The prices and yields for on the run Treasurys were collected from the Wall Street Journal on July 27 10, 2020 U S Treasury Quotes Thursday, July 27, 2020 Treasury issue Prices and yields for on the run treasuries MATURITY COUPON Price CHG 10 15 2019 1 0000 99 3160 0 0080 06 30 2020 1 2500 99 3120 0 0020 07 27 2020 1 5000 99 3120 0 0020 06 30 2022 1 0000 101 2940 0 0040 06 30 2023 1 3750 102 0500 unch 06 30 2024 3 1240 106 2860 0 0020 07 27 2024 3 2500 107 3060 0 0080 You decided to purchase a 4 year Treasury with a $100,000 face on July 27, 2020 But settlement will occur on July, 28 2020 The last interest payment on the asset was made on 06 30 2020 (Hint Assume a 181 day coupon period) a What is the clean price of the 5 year Treasury (2 points) b Calculate the accrued interest due to the seller (2 points) c Calculate the dirty price of this transaction

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Question: Use the information below to answer questions below (5 Points) The prices and yields for on-the-run Treasurys were collected from the Wall Street Journal on

Use the information below to answer questions below (5 Points)

The prices and yields for on-the-run Treasurys were collected from the Wall Street Journal on July 27 10, 2020

U.S. Treasury Quotes. Thursday, July 27, 2020

Treasury issue

Prices and yields for on-the-run-treasuries

MATURITY	COUPON	Price	CHG
10/15/2019	1.0000	99.3160	0.0080
06/30/2020	1.2500	99.3120	0.0020
07/27/2020	1.5000	99.3120	0.0020
06/30/2022	1.0000	101.2940	0.0040
06/30/2023	1.3750	102.0500	unch.
06/30/2024	3.1240	106.2860	0.0020
07/27/2024	3.2500	107.3060	0.0080

You decided to purchase a 4-year Treasury with a $100,000 face on July 27, 2020. But settlement will occur on July, 28 2020. The last interest payment on the asset was made on 06/30/2020. (Hint: Assume a 181-day coupon period)

a. What is the clean price of the 5-year Treasury? (2 points)

b. Calculate the accrued interest due to the seller. (2 points)

c. Calculate the dirty price of this transaction

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