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The US Treasury issues a face viue or par value) $10,000 10 year bond today that has a stated (contractual) interest rate of 3% and

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The US Treasury issues a face viue or par value) $10,000 10 year bond today that has a stated (contractual) interest rate of 3% and pays Interest semi-annually How much money does the US Treasury receive when it issues the bond? What is the current market US Treasury 10 year interest rate? How many periods (n) are there? What is the value of in the discount factor formula? What is the amount of each interest payment that will be made on the bond? How much will the US Treasury pay back to the investors at the end of year 30 (not including interest)? Factor Formule (141A ? PV Period Factor 2 3 4 5 6 7 10 11 12 14 IS 16 17 19 20 20 Current Value of the Bond

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