Consider the US T-Bond with coupon 4.625% and maturity date 05/15/2006.
1.compute the accrued interest of that bond on 01/07/2002.
2.Its quoted price was 101.0625 on 01/07/2002. Caculate its yield to maturity.What's the equivalent annual yield to maturity?
3. Knowing that the repo rate for that bond was 1.67% on 01/07/2002, caculate the daily net funding cost
or gain for an investor that is long $1 million of that bond.
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