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Assignment 07-Bonds and Their Valuation s Back to Assignment Attempts Keep the Highest: 12 Attention: Due to a bug in Google Chrome, this page may
Assignment 07-Bonds and Their Valuation s Back to Assignment Attempts Keep the Highest: 12 Attention: Due to a bug in Google Chrome, this page may not function correctly. Click here to learn more 7. Valuing semiannual coupon bonds Aa Aa Bonds often pay a coupon twice a year. For the valuation of bonds that make semianual payments,the number of periods doubles, whereas the amount of cash flow decreases by halif. Using the values of cash flows and number of periods, the valuation model is adjusted accordingy Assume that a $1,000,000 par value, semiannual coupon U.S. Treasury note with five years to maturity (YTM) has a coupon rate of 3%. The yield to maturity of the bond is 11.00% Using this information and ignoring the other costs involved, calculate the value of the Treasury note: O $593,720.72 $440,051.83 0 $698,494.97 o $838,193.96 Based on your alculations and understanding of semiannual coupon bonds,complete the folowing statement: The T-note described in this problem is selling at a
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