Question
A ten-year Treasury note with a 5.000% coupon rate is sold at par value in the primary market (assume par value is $100). Bill purchases
A ten-year Treasury note with a 5.000% coupon rate is sold at par value in the primary market (assume par value is $100). Bill purchases the Treasury note at a price of 103.000 when it has six years left to maturity and it has a 4.425% yield-to-maturity. Bill holds the Treasury note for four years and then sells it in the secondary market to George who will hold the T-note to maturity. Assume 4 years from when Bill buys the Treasury note, yield-to-maturities (interest rates) are: 2.840% on T-notes with 6-months to maturity 3.100% on T-notes with 1-year to maturity 3.250% on T-notes with 2-years to maturity 3.400% on T-notes with 3-years to maturity 3.660% on T-notes with 4-years to maturity 3.800% on T-notes with 5-years to maturity 4.270% on T-notes with 10-years to maturity Complete a timeline for Bills Treasury note (while owned by Bill). The timeline must show only numbers (i.e., no words) unless a variable is unknown in which case you can show it as a question mark (?).
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