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If interest rates rise to 7%/year after one-year passes, what will the price be for: a. (3 points.) A one-year T-Bill with a face-value of
If interest rates rise to 7%/year after one-year passes, what will the price be for: a. (3 points.) A one-year T-Bill with a face-value of $1,000. b. (3 points.) The 10-year T-Note (now is a 9-year note) with a face-value of $1,000 and a coupon rate of 5%/year (paid annually). c. (3 points.) The 20-year T-Bond (now is a 19-year bond) with a face-value of $1,000 and a coupon rate of 2.5%/year (paid annually).
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