Question
A U.S. Government T-Note with a 3-year maturity has a coupon rate of 5% and a face value of $1,000. The coupons are paid annually
A U.S. Government T-Note with a 3-year maturity has a coupon rate of 5% and a face value of $1,000. The coupons are paid annually and the next coupon is due in one year. Using the Treasury spot rates given in the table below, what is the price of the coupon bond? (Round to nearest cent.)
| Treasury Spot Rates |
| |
| Term | Rate | |
| t=1 | 9.55% | |
| t=2 | 5.42% | |
| t=3 | 3.78% | |
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Campaign Finance Reform
Authors: Melissa M. Smith, Glenda C. Williams, Larry Powell, Gary A. Copeland
1st Edition
0739145657, 978-0739145654
