The day count convention can be ACT/ACT (eg, US Treasury bonds), 30/360 (eg, US Corporate and municipal bonds), or ACT/360 (eg, money market instruments). The Cash Price = Quoted Price - Accrued Interest.
David's XLS is here: https://trtl.bz/2uH24TW
when selling bond do i need to discount the my Accrued interest amount.(Assuming Bond Pays coupon annually & sales happen in after six month, why buyer will pay me the accrued interest amount Full, in advance six month)
Learning objectives: Construct a replicating portfolio using multiple fixed income securities to match the cash flows of a given fixed income security. Identify arbitrage opportunities for fixed income securities with certain cash flows. Differentiate between “clean” and “dirty” bond pricing and...