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Assume that a $ 2 , 0 0 0 , 0 0 0 par value, semiannual coupon U . S . Treasury note with two
Assume that a $ par value, semiannual coupon US Treasury note with two years to maturity has a coupon rate of The yield to maturity of the bond is Using this information and ignoring the other costs involved, the value of the Treasury note is$
Based on your calculations and understanding of semiannual coupon bonds, complete the following statements:
The Tnote described is currently selling at a Assuming that interest rates remain constant over the life of the note, its price should be expected to as the Tnote approaches maturity. When valuing a semiannual coupon bond, the time period N in the present value formula is assumed to have a value of periods.
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