On January 9, 2007 you buy an 8% US Treasury that matures on April 15 2012 for a price of 922.50. calculate the
- accrued interest
- total cost of acquiring bond
- coupon yield
accrued interest is the interest that has accumulated on a bond since the last interest payment up to, but not including, the
settlement date. Then accrued interest = 80 * 5 = 400 (assuming ...
The solution calculates the characteristics of the bond.