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Prices and yields A 10-year U.S. Treasury bond with a face value of $10,000 pays a coupon of 5.5% (2.75% of face value every six
Prices and yields A 10-year U.S. Treasury bond with a face value of $10,000 pays a coupon of 5.5% (2.75% of face value every six months). The semiannually compounded interest rate is 5.2% (a six-month discount rate of 5.2/2 2.6%) What is the present value of the bond? Generate a graph or table showing how the bond's present value changes for semiannually compounded interest rates between 1% and 15%
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