Submitted by Educational_Sir3783 t3_yimoz2 in personalfinance
Knipfty t1_iujqjdl wrote
The 2-yr T Note will pay the coupon twice a year on the last day of the month. If it were recently auctioned that would mean it settled today. So it pays coupons on Apr 30 and Oct 31. If those dates fall only a weekend or holiday, you will receive payment on the next business day.
10,000*4.375%/2 = 218.75
At maturity, you will receive 10,000 plus the last coupon payment. or 10,218.75.
Lastly you will owe federal taxes (no state income taxes) on each coupon payment in the year received and the difference between what you paid for the T Note and it's face value at maturity.
Educational_Sir3783 OP t1_iujs8tb wrote
Thanks a bunch!
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