On 3/31/19, you buy $100,000 face amount of a new issue treasury note with a 2.70% coupon at par. The notes mature on 3/31/29. Bear in mind that treasury notes, and most notes and bonds, pay a coupon every six months.

(You have to answer the following questions with numbers and logic; you cant fall back on your instructors time-tested, and doubtless true, answer that We cant predict the future!)

a. Is this note callable? How do you know? (1 point)

b. On 3/31/20, the 9 year treasury yield is 2.45%. What is the market value of your notes? (5 points)

c. What is the total return on your investment in this note, in dollars and percentage, on 3/31/20? (3 points)

d. What is the current yield on the notes on 3/31/20? (2 points)

e. On 3/31/21, the 8 year treasury yield is 2.98%. What is the market value of your notes? (5 points)

f. What is the total return on your investment in this note, in dollars and percentages, on 3/31/21? (3 points)

g. What is the current yield on the notes on 3/31/21? (2 points)

h. Is it good for you, as a note holder, that the current yield has gone up? (1 point)