Q on october 5 2013 you bought a 12000 t-note which matures, Ask an Expert

Finance

Q. On October 5, 2013, you bought a $12,000 T-note which matures on August 15, 2024 (settlement happens 2 days after purchase, so you get actual ownership of bond on October 7, 2013). Coupon rate on T-note is 4.386% also present price quoted on bond is 105:19 (or 105.59375% of face value of the T-note). Last coupon payment occurred on May 15, 2013 (145 days before settlement), also next coupon payment will be paid on November 15, 2013 (39 days from settlement).

a) Compute accumulated interest due to seller from buyer at settlement.

b) Compute dirty price of this transaction.

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9724920

Have any Question?Write your Review or question?

Related Questions in Basic Finance

Question - pkof considers bidding for a big dredging

Question - PKOF considers bidding for a big dredging project in the port of Lagos. The project would yield annual cash flows of 2.5 billion NGN for the next three years. At the current exchange rate of NGN 125/EUR, this ...

Question - the current zero-coupon yield curve for

Question - The current zero-coupon yield curve for risk-free bonds is as follows: Maturity(Years) 1 2 3 4 5 YTM 4.96% 5.48% 5.73% 5.97% 6.07% What is the risk-free interest rate for a five-year maturity?

Steve has purchased a treasury bill with a 182-day maturity

Steve has purchased a Treasury bill with a 182-day maturity and a $10,000 par value for $9,645. Ninety-two days later, Steve sells the T-bill for $9,719. Determine Steve's expected annualized yield from this transaction.

Your firm is contemplating the purchase of a new 585000

Your firm is contemplating the purchase of a new $585,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $95,000 at the end of that time. ...

Question - discuss how a stock repurchase acts like a cash

Question - Discuss how a stock repurchase acts like a cash dividend and the tax advantages provided by the stock repurchase. A substantial initial response consisting of a minimum of 100 words using proper grammar, spell ...

These two companies are investigating similar projects but

These two companies are investigating similar projects (but not both projects) in which they will invest. The characteristics of the two systems are given below: Project 1 Project 2 Initial Outlay (IO) ...

A plaintiff is suing the city for injuries sustained after

A plaintiff is suing the city for injuries sustained after a freak street sweeper accident. In the trial, doctors testified that it will be five years before the plaintiff is able to return to work. The jury has already ...

What factors are involved in cash flow management as they

What factors are involved in cash flow management as they relate to various payment methods and What kinds of payment terms might the business venture have with its vendor to help manage its cash flow?

What is the macaulay duration of a 2-year coupon bond with

What is the Macaulay duration of a 2-year coupon bond with a face value of $1000, a yearly coupon rate of 8% and a YTM of 10%?

You want to borrow 103000 from your local bank to buy a new

You want to borrow $103,000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $2,350, but no more. Assuming monthly compounding, what is the highest rate you can afford on a 54-month ...

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