Calculate the dirty price of this transaction

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Reference no: EM13970866

On October 7, 2010, you purchase a SR10,000 T-note that matures on August 15, 2021 (settlement occurs two days after purchase). The coupon rate on the T-note is 4.375 percent and the current price quoted on the bond is 105:08 (or 105.25% of the face value of the T-note). The last coupon payment occurred on May 15, 2010, and the next coupon payment will be paid on November 15, 2010.

a. Calculate the number of days between the last coupon payment and the settlement date.

b. Calculate the number of days between the settlement date and the next coupon payment date.

c. Calculate the accrued interest due to the seller from the buyer at settlement.

d. Calculate the dirty price of this transaction.

Reference no: EM13970866

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