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Bonds often pay a coupon twice a year. For the valuation of bonds that make semiannual payments, the number of periods doubles, whereas the amount

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Bonds often pay a coupon twice a year. For the valuation of bonds that make semiannual payments, the number of periods 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 US Treasury note with five years to matunity has a coupon rate of 6%. The vield to matunity (YTM) of the bond is 9,90%. Using this information and ignoring the other costs involved, calculate the value of the Treasury note: O 5721,700.90 $534,907.72 $1,018,871.86 $349,059,88 Based on your calculations and understanding of semiannual coupon bords, complete the following statement: The Tente desch bed in this problem is selling a Bonds often pay a coupon twice a year. For the valuation of bonds that make semiannual payments, the number of periods doubles, whereast amount of cash flow decreases by half. Using the values of cash flows and number of periods, the valuation model is adjusted accordingly. 12 Assume that a $1,000,000 par value, semiannual coupon US Treasury note with five years to maturity has a coupon rate of 6%. The yield tom CYTM) of the bond is 9.90%. Using this information and ignoring the other costs involved, calculate the value of the Treasury note: $221,700.90 O $534,907.72 O $1,018,871,86 $849,059.88 discount Based on your calculations and understanding of ad pupon bonds, complete the following statement premium The Tinote described in this problem is selling at a Grade It Now Save & Continue Continue without 15 9

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