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9- Valuing semiannual coupon brands Bonds omen pay a coupon twice a year. Tor the valuation of bends that make semiannual payments, the number of

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9- Valuing semiannual coupon brands Bonds omen pay a coupon twice a year. Tor the valuation of bends that make semiannual payments, the number of Periods doubles, whereas the amount of cash flow decreases by half. Using the values of cash flows and number 01 periods, the valuation model is adjusted accordingly. Assume that a $1,000,000 par value, semiannual coupon U.S. Treasury note with two years to maturity (YTM) has a coupon rate Of 6%. The yield to maturity of the bond is 9.90%. Using this Information and ignoring the other costs involved, calculate the value of the Treasury note: $930,773,58 $586,387,36 $1,116,928.30 $791.157.54

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