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A US Treasury bond has a coupon of 5% and will expire in 9 months. a. What is the cash price of the Treasury bond?

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A US Treasury bond has a coupon of 5% and will expire in 9 months. a. What is the cash price of the Treasury bond? b. If today is March 5 and the last coupon payment was November 27, what is the quoted price of the Treasury bond? Assume 28 days in February. Maturity (months) Spot Zero Rates Spot Rates % per annum (based upon continuous compounding) 10 9 8 12 2 34 42 64 54 52 6 72 82 9 34 2

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