On October 5, 2019, you purchase a $13,000 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 4.750 percent and the current price quoted on the bond is 105.34375 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.  1.8716%

b.  $13,937.9955

Explanation:

The computation is shown below:

a. For accrued interest

= (Coupon rate ÷ 2) × (Before settlement days ÷ Total settlement days)

= (4.750% ÷ 2) × (145 days ÷ 145 days + 39 days)

= 2.3750% × 0.7880

= 1.8716%

b. Now the dirty price is

= Face value × (accrued interest percentage + current price quoted on the bond)

= $13,000 × (1.8716% + 105.34375%)

= $13,000 × 107.21535%

= $13,937.9955

By applying the above formulas we can get the accrued interest and the dirty price

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.