Question
The Treasury announces new issue of Treasury Bonds. Settlement date: 26.08.2020 Maturity date: 25.08.2023 Periodic coupon rate (6 months): 1,87% Payment dates: 26.02.2021 27.08.2021 25.02.2022
The Treasury announces new issue of Treasury Bonds.
Settlement date: 26.08.2020
Maturity date: 25.08.2023
Periodic coupon rate (6 months): 1,87%
Payment dates:
26.02.2021
27.08.2021
25.02.2022
26.08.2022
24.02.2023
25.08.2023
Market rates:
1 Month: 0.7%
3 Months: 1%
On the new issuance, Market is expecting 25bp premium to secondary market. What would be the expected auction yield/price of new treasury bond?
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The Legal Environment Today Summarized Case Edition
Authors: Roger LeRoy Miller
8th Edition
130526276X, 978-1305279407, 1305279409, 978-1305704930, 1305704932, 978-1305262768
