1.Assuming that a $1,000,000 par value, semiannual coupon US treasury note with 5 years to maturity (YTM) has a coupon rate of 6%.The yield to maturity of the bond is 8.8%. Using this information and ignoring other costs involved, calculate the value of the treasury note:

options: $559,865.41 $1,066,410.30 $755,373.96 $888,675.25

2. Assuming that interest rates remain constant, the T-note's price is expected to _____