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Below is a screenshot taken from Wall Street Journal with 10/20/2023 U.S. Treasury quotes in the left-hand-side table. CPN and YLD are coupon rate and
Below is a screenshot taken from Wall Street Journal with 10/20/2023 U.S. Treasury quotes in the left-hand-side table. CPN and YLD are coupon rate and yield to maturity, respectively, and both in percentages.
Tasks:
Draw a yield curve using the Treasury quotes. Remember to "connect the dots"!
Consider the 7-year Treasury Note in the table and assume that it makes semiannual coupon payments with a face value of $1,000. Draw a timeline for its cash flows. Find its bond value.
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