On october 5 2013 you purchase a 12000 t-note that matures, Ask an Expert

Finance

On October 5, 2013, you purchase a $12,000 T-note that matures on August 15, 2024 (settlement occurs two days after purchase, so you receive actual ownership of the bond on October 7, 2013). The coupon rate on the T-note is 4.386 percent and the current price quoted on the bond is 105:19 (or 105.59375% of the face value of the T-note). The last coupon payment occurred on May 15, 2013 (145 days before settlement), and the next coupon payment will be paid on November 15, 2013 (39 days from settlement).

a. find out the accrued interest due to the seller from the buyer at settlement.

b. find out the dirty price of this transaction.

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M939523

Have any Question?Write your Review or question?

Related Questions in Basic Finance

Case study - coleman technologies inccoleman technologies

Case Study - Coleman Technologies Inc. Coleman Technologies is considering a major expansion program that has been proposed by the company's information technology group. Before proceeding with the expansion, the company ...

Question - you are given one-year stock options with an

Question - You are given one-year stock options with an exercise price of $30. The current stock price is $30, so the options are at-the-money. Without hedging, the stock price at year-end will either be $28 or $38 with ...

Suppose a new ergonomic safety intervention cost 405000

Suppose a new ergonomic, safety intervention cost $405,000. Further suppose the intervention is certain to prevent all back injuries associated with the job. Over the last three years, the employer has averaged 14 injuri ...

Suppose that 5 years ago cisco systems sold a 15-year bond

Suppose that 5 years ago Cisco Systems sold a 15-year bond issue that had a $1,000 per value and a 7% coupon rate. Interest is paid semiannually. a. If the going interest rate has risen to 10%, at what price would the bo ...

How much would you pay for a share of preferred stock that

How much would you pay for a share of preferred stock that pays a $3.25 dividend and your required return for an investment of this kind is 7%?

1 how to find the total shortage for company sells 2338

1. How to find the total shortage for Company sells 2338 chairs a year at an average price per chair of $185. The carrying cost per unit is $25.67. The company orders 579 chairs at a time and has a fixed order cost of $5 ...

Certain financial ratios for elizabeth arden for its most

Certain financial ratios for Elizabeth Arden for its most recent year below, along with the average ratios for its industry. Based on those ratio a. Does Arden seem to prefer to finance its assets with debt or with equit ...

Arvo corporation is trying to choose between three

Arvo Corporation is trying to choose between three alternative investments. The three securities that the company is considering are as follows: Tax-free municipal bonds with a return of 8.8%. Wooli Corporation bonds wit ...

You play the following game against your friend you have 2

You play the following game against your friend. You have 2 urns and 4 balls. One of the balls is black and the other 3 are white. You can place the balls in the urns any way that you'd like, including leaving an urn emp ...

Discuss hsbc ring-fencing strategy and the setting up of

Discuss HSBC ring-fencing strategy and the setting up of HSBC UK?

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Basic Finance Expert