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    Simple Bond Question

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    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
    - YTM

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    Solution Preview

    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 ...

    Solution Summary

    The solution calculates the characteristics of the bond.