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A 5 year treasury note has a coupon rate of 2.5 percent. what price would you pay for such a security having a principal (par
A 5 year treasury note has a coupon rate of 2.5 percent. what price would you pay for such a security having a principal (par value) of $1 million if the current interest rate is 2.25 percent? The current interest rate is 3 percent? (to simplify the calculations, assume that coupon payments are made once per year, starting a year from now.)
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