On Jan 8, 2018, you purchase a $10,000 T-note that matures on Mar 15, 2021. The coupon rate on the T-note is 2.75%. Settlement occurs two days later, January 10, 2018. The last coupon payment occurred Sep 15, 2017 (117 days before the settlement), and the next coupon payment will be paid on Mar 15, 2018 (64 days from settlement).
a. Calculate the full (dirty) price of the bond assuming the yield to maturity of the bond is 2.50%.
b. Calculate the accrued interest due to the seller from the buyer at settlement.
c. Calculate the clean price of the bond.