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Entered 11200 10800 Answer Preview 11200 10800 Result incorrect incorrect At least one of the answers above is NOT Correct (1 pt) Consider a treasury
Entered 11200 10800 Answer Preview 11200 10800 Result incorrect incorrect At least one of the answers above is NOT Correct (1 pt) Consider a treasury bond with face value of 10000 dollars and 2 years to maturity. The bond pays coupons of 400 dollars every six months and a coupon has just been paid. Assume interest rates are flat at 5 percent for next two years and that interest is compounded every six months. What is the present value of the bond? 11200 What will the value of the bond be 1 year from now, after the coupon has been paid?, 10800
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