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choices: $523,798.06, $706,711.67, $831,425.49, $997,710.59 choices: Premium, discount choices: increase, decrease choices: 8-month, 6-month, annual, 4-month Assume that a $1,000,000 par value, semiannual coupon U.S.
- choices: $523,798.06, $706,711.67, $831,425.49, $997,710.59
- choices: Premium, discount
- choices: increase, decrease
- choices: 8-month, 6-month, annual, 4-month
Assume that a $1,000,000 par value, semiannual coupon U.S. Treasury note with three years to maturity has a coupon rate of 3%. The yield to maturity of the bond is 9.60%. 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 T-note 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 T-note approaches maturity. When valuing a semiannual coupon bond, the time period (N) in the present valu formula is assumed to have a value of periods
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