Assuming today is 9/23/20, your firm wants to purchase a $10,000 par value U.S. Treasury bond with 30 years to maturity, annual coupon rate of 2.00% with semiannual coupon payments. The market annual yield to maturity on 30-year "T" bonds, found in the US Treasury Yield curve, is 1.42%. semiannual rate=0.71% https://www.treasury.gov/resource-center/data-chart-center interest-rates/Pages TextView.aspx?data=yield 2 Yr 9/23/2020 0.08 What is the asked price (market price) for the bond? Date 1 Mo 2 Mo 0.09 3 Mo 0.11 6 Mo 0.11 1 Yr 0.13 3 Yr 0.15 5 Yr 0.28 7 Yr 0.46 10 Yr 0.68 20 Yr 1.21 30 Yr 1.42 0.14 Hint: YTM from US Treasury Yield Curve = 1.42% or semiannual rate = 0.710% Also, 1-(1+ra)-N VB = INT +M(1+rd)) id VB= B. If the 30 US Treasury Bond rate jumps immediately to 2.00%, what is the new price for the 30-year "T" bond in part A, above? How much, in percent, would you lose or gain if you had purchased the bond in part A. VB= Gain/Loss%={price@r=2.00%) - (price@r=1.42%)/(price@r=1.42%=