On october 5, 2019, you purchase a $14,000 t-note that matures on august 15, 2031 (settlement occurs two days after purchase, so you receive actual ownership of the bond on october 7, 2019). the coupon rate on the t-note is 4.388 percent and the current price quoted on the bond is 105.65625 percent. the last coupon payment occurred on may 15, 2019 (145 days before settlement), and the next coupon payment will be paid on november 15, 2019 (39 days from settlement).a. calculate the accrued interest due to the seller from the buyer at settlement. b. calculate the dirty price of this transaction

a: 247.43 interest

b: 15,039.31 dirty price of the purchase

Explanation:

We purchase the note at the quoted price plus the accrued interest at the time:

accrued interest:

principal x rate x time

we express time as a portion of year.

14,000 x 4.388% x 145/360 = $  247.4344

note market price:

14,000 x 105.65625/100 = 14,791.875

dirty price:

  principal + interest

14,791.875 + 247.4344 = 15,039.31

a progressive tax is a tax that imposes a lower tax rate on low-income earners compared to those with a higher income, making it based on the taxpayer's ability to pay. that means it takes a bigger percentage from high income earners than it does from low income people.