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Four Treasury securities data from today's Wall Street Journal are provided below: Bond Treasury Security Maturity Annual Coupon Price Par Value A T-bill 6 months
Four Treasury securities data from today's Wall Street Journal are provided below:
Bond | Treasury Security |
Maturity | Annual Coupon |
Price | Par Value |
A | T-bill | 6 months | 0% | $984.0240 | $1,000 |
B | T-bill | 1 year | 0% | $966.1280 | $1,000 |
C | T-note | 18 months | 3.875% | $999.0625 | $1,000 |
D | T-note | 2 years | 4.625% | $1,009.0625 | $1,000 |
Please note that actual coupons are paid semi-annually, i.e., one half of the annual coupon.
Given the zero prices obtained in (1) above, what should be the price of a 2-year T-note with 7.5% annual coupon (also paid semi-annually) with $1,000 par value per share?
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