Need help with finance assignment!?

Posted on 2014-04-25 10:54:00 in Finance by R3DW1NG5

Hello! thanks for taking the time to read this!

m stuck on a question on my finance assignment and i would greatly appreciate your help!



The first part of the question race a person spends $126,000 face value of a certain treasury bond on 28 june 2013

Coupon: 6.25

Maturity: 15 June 2014

Closing yield: 2.47

Gross Price: 103.802

Accrued interest: 0.222

Capital Price: 103.58



The questions asks for me to tabulate the cash flows, so i need to state how much is paid, the coupons received and the payment on maturation of the bond (the face value,) my first question is how much did she actually pay for the bond? im assuming this is not 126000, but a higher value.



The second part asks for me to confirm the yield to maturity of 2.47, i have no idea how to do this!any help would be greatly appreciated!thank you!

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