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Suppose that you want to figure out the dirty price of a U.S. Treasury Bond. You have collected the following data:

Issuer: U.S. Treasury; Par value = $1,000; Annual coupon rate = 5.246%;

Quoted price = 101:24; Yield = 4.86%;

Issue date = 12/21/2008; Maturity = 12/21/2018

Transaction date: 01/17/2010; Settlement = T+1 (transaction date plus 1)

What is the full price you should pay for this bond? PLEASE show each STEP with formulas.

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92390980

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