On November 15, 2013, the Treasury bond with August 15, 2043 maturity was quoted 96:26 at the
bid and 96:28 at the asked. The coupon rate of the T-bond is 3.625%. (Assume that the face value of
this T-bond is $10,000.)
a. What were the flat (clean) prices, i.e. the bid and asked prices, of this T-bond on that day?
b. What were the invoice (dirty) prices, i.e. the bid and asked prices after incorporating the accrued
interest, of this T-bond on that day?