inter Question 3 (20 Points) You bought 10-year treasury notes (t-notes) of $100,000,000 face value from the money you won from a lottery 6 years ago. Now, you want to sell your tnotes (with 4 years until maturity) on 11/30/2020 because you want to settle an outstanding financial obligation You friend, is a finance major, suggests that you should sell your bonds in the market that offers the highest present value for the expected stream of income between the spot bonds market and the STRIPS bonds market Geven the market information below. calculate the value of your bonds in both the STRIPS market and the spots bonds market. Would you profit from STRIPPING this Treasury Note (NB Your bond now has 4 years until matarrty Also recall that treasury instruments like t-nates pay coupon semi-annually) US TD 19 NOVEMBER 2020 Hypothetical US Treasury Spot Market Market 1) COUPON PRICE YIELD STRIPS Prices and Yields CBG 19 November 2020 Acked A DY 0000 Maturity Bid 1.621 99413 Asked yield Maturity Bid Asked yield Stripped Stripped Principal 7-Year 145 900.000 Mart 2 lahat 15 Nov 15-Nor 1359110 98456 20 98404 bod 20 98381 98334 2.34 31 M 13-M 98154 98 226 2.401 21 016698363 2.464 102023 1 92051 0.000 107.904 91096 2.522 20-A 21 97.916 91422588 1202000 10 000 30- 97654 97.766 2641 2 91315 21 97.692 98031 2.712 07447 076 1761 22 92.41 9702 2836 2011 972 0.000 3. Nos 071939796 2.885 30- 22 92.72191789 2.96 041 De 2014 0.000 940 92083 1004 96 97 97.683 1084 31. Mas 11-L 95241 0.000 730733 985) 127 96.724 995571308 30-A 1.24 996485 96.618 152030 96.471 14 1112 1.000 36- 30- 2396 235 96.388 3369 23 0621 97.335 3456 20-D 1996 015 06153 3.49 95.96492 SI 95832939453611 11. New 957597083 704 2. 9538 0712 95.174 96.9623828 SAN 3332195484 1853 15. Apr 25 11906.8413952 15-0 15-O 239907952543974 93-000 952 4076 10 31-5 22 20. Ape 20 Dec 24 34 24 DOL inter Question 3 (20 Points) You bought 10-year treasury notes (t-notes) of $100,000,000 face value from the money you won from a lottery 6 years ago. Now, you want to sell your tnotes (with 4 years until maturity) on 11/30/2020 because you want to settle an outstanding financial obligation You friend, is a finance major, suggests that you should sell your bonds in the market that offers the highest present value for the expected stream of income between the spot bonds market and the STRIPS bonds market Geven the market information below. calculate the value of your bonds in both the STRIPS market and the spots bonds market. Would you profit from STRIPPING this Treasury Note (NB Your bond now has 4 years until matarrty Also recall that treasury instruments like t-nates pay coupon semi-annually) US TD 19 NOVEMBER 2020 Hypothetical US Treasury Spot Market Market 1) COUPON PRICE YIELD STRIPS Prices and Yields CBG 19 November 2020 Acked A DY 0000 Maturity Bid 1.621 99413 Asked yield Maturity Bid Asked yield Stripped Stripped Principal 7-Year 145 900.000 Mart 2 lahat 15 Nov 15-Nor 1359110 98456 20 98404 bod 20 98381 98334 2.34 31 M 13-M 98154 98 226 2.401 21 016698363 2.464 102023 1 92051 0.000 107.904 91096 2.522 20-A 21 97.916 91422588 1202000 10 000 30- 97654 97.766 2641 2 91315 21 97.692 98031 2.712 07447 076 1761 22 92.41 9702 2836 2011 972 0.000 3. Nos 071939796 2.885 30- 22 92.72191789 2.96 041 De 2014 0.000 940 92083 1004 96 97 97.683 1084 31. Mas 11-L 95241 0.000 730733 985) 127 96.724 995571308 30-A 1.24 996485 96.618 152030 96.471 14 1112 1.000 36- 30- 2396 235 96.388 3369 23 0621 97.335 3456 20-D 1996 015 06153 3.49 95.96492 SI 95832939453611 11. New 957597083 704 2. 9538 0712 95.174 96.9623828 SAN 3332195484 1853 15. Apr 25 11906.8413952 15-0 15-O 239907952543974 93-000 952 4076 10 31-5 22 20. Ape 20 Dec 24 34 24 DOL