Question
Table below presents information on three US Treasury bonds: Maturity Coupon Rate Price (per $100 of Face value) 6 months 1% 99.75 12 months 2%
Table below presents information on three US Treasury bonds:
| Maturity | Coupon Rate | Price (per $100 of Face value) |
| 6 months | 1% | 99.75 |
| 12 months | 2% | 100.5 |
| 18 months | 1.5% | 98.5 |
Use this information to answer the following questions:
Suppose that US Treasury plans to issue 5% coupon bonds, which pay semi-annual coupons. The bonds will mature in 18 months. What is the price of these bonds?
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Finance A Quantitative Introduction Volume 2
Authors: Piotr Staszkiewicz, Lucia Staszkiewicz
1st Edition
0128027975, 978-0128027974
