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Suppose that $500 million of a 10-year fixed principal treasury note with a coupon rate of 5% is purchased by a dealer firm to create

Suppose that $500 million of a 10-year fixed principal treasury note with a coupon rate of 5% is purchased by a dealer firm to create zero-coupon treasury securities.

a) what is the maximum number of zero coupon treasuries the dealer firm can create from this notice?

b) what are the FV on each of these zero-coupon securites?

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