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(4 points) Question 2 A U.S. Treasury bond makes semi-annual payments of $300 for 10 years. (The investor receives 20$300 payments at 6 -month intervals.)
(4 points) Question 2 A U.S. Treasury bond makes semi-annual payments of $300 for 10 years. (The investor receives 20$300 payments at 6 -month intervals.) At the end of 10 years, the bond's principal amount of $10,000 is paid to the investor. (a) What is the present value of the bond if the yield to maturity is 7% ? (b) Suppose the bond is observed trading at $11,640. What yield to maturity are investors using to value the bond's cash flows
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