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could you plz explain how we solve (n) and (k) ??Treasury Bond Pricing • Pricing between coupon dates - adjust for final coupon payment Example: Treasury Bond Pricing • An ex

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Answer #1

As the bond is sold on 15 July 2014, and next coupon will be 15 November 2014
Days left till next coupon=61
Total Days between 2 coupon dates=Days from 15 May 2014 to 15 November 2014=184

Hence, k=61/184

n=Number of coupons to be paid from next coupon date till maturity=7

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