Assume that a $1,000,000 par value, semiannual coupon U.S. Treasury note with four years to maturity (YTM) has a coupon rate of 6%. 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:

a.) $841,635.85

b.) $715,390.47

c.) $530,230.59

d.) $1,009,963.02

Based on your calculations and understanding of semiannual coupon bonds, complete the following statement:

When valuing a semiannual coupon bond, the time period variable (N) used to calculate the price of a bond reflects the number of (Options are: a.) 12-month, b.) 4-month, c.) annual, d.) 6-month) periods remaining in the bonds life.