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Suppose the U . S . Treasury issued $ 5 0 0 million face value of 1 0 year, 7 . 5 % bonds on
Suppose the US Treasury issued $ million face value of year, bonds on January at par value. Coupon interest is paid semiannually with the face value due in years a On January this bond is priced in the market to yield a stated using semiannual compounding. Calculate the correct price you will pay for the bond on for each $ of face value. b If on the other hand, the stated yieldtomaturity of these bonds is what is their price per $ face value
Suppose the US Treasury issued $ million face value of year, bonds on January at par value. Coupon interest is paid semiannually with the face value due in years
a On January this bond is priced in the market to yield a stated using semiannual compounding. Calculate the correct price you will pay for the bond on for each $ of face value.
b If on the other hand, the stated yieldtomaturity of these bonds is what is their price per $ face value
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