Consider a Treasury bond maturing Mar 3, 2033, offering a coupon rate of 6% p.a., with a face value of $100. (a) What is
Posted: Fri Mar 04, 2022 9:40 am
Consider a Treasury bond maturing Mar 3, 2033, offering a coupon
rate of 6% p.a., with a face value of $100.
(a) What is the accrued interest component as of Feb 3,
2022?
(b)If this security is quoted today by the WSJ to have a clean
price of $101.65, what is the corresponding dirty price?
(c) Given the dirty price found in part (b), can you tell
without doing any calculations whether the yield to maturity of the
bond is greater or smaller than the coupon rate of 6% p.a.
rate of 6% p.a., with a face value of $100.
(a) What is the accrued interest component as of Feb 3,
2022?
(b)If this security is quoted today by the WSJ to have a clean
price of $101.65, what is the corresponding dirty price?
(c) Given the dirty price found in part (b), can you tell
without doing any calculations whether the yield to maturity of the
bond is greater or smaller than the coupon rate of 6% p.a.