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2 . ( YIELD ) On the same day, Treasury 3 . 5 s of 2 0 1 8 ( 3 . 5 % coupon

2.(YIELD) On the same day, Treasury 3.5s of 2018(3.5% coupon semiannual bonds maturing in February of 2018) were priced at 107.469%(assuming $1,000 face value it is equivalent to $1,074.69 price). What was their yield to maturity? Suppose that the price was 110.0%. What would happen to the yield? Compute the yield to maturity using both YIELD and RATE functions in Excel.

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