Assume that a $1000000 par value, semiannual coupon U.S. Treasury

Back to Assignment Attempts Keep the Highest: 12 6. valuing semiannual coupon bonds Bonds often Aa Aa periods pay a coupon twice a year. For the valuation of bonds that make semiannual payments, the number of doubles, whereas the amount of cash flow decreases by half. Using the values of cash flows and number of periods, the valuation model is adjusted accordingly. Assume that a $1,000,000 par value, semiannual coupon U.S. Treasury note with five years to maturity mTM) has a coupon rate of 3%. The yield to maturity of the bond is 9.9o%. using this information and ignoring the other costs involved, calculate the value of the Treasury note: $732,952.10 O $623,009.29 $879,542.52 O $461,759.82 Based on your calculations and understanding of semiannual coupon bonds, complete the following statement: Assuming that interest rates remain constant, the T-note's price is expected to decrease increase decrease Grade It Now Save Continue Continue without saying