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Treasury Annual Bond Security Maturity Coupon Price Par Value A T-bill 6 months 0% $984.0240 $1,000 B T-bill 1 year 0% $966.1280 $1,000 C
Treasury Annual Bond Security Maturity Coupon Price Par Value A T-bill 6 months 0% $984.0240 $1,000 B T-bill 1 year 0% $966.1280 $1,000 C T-note 18 months 3.875% $999.0625 $1,000 D T-note 2 years 4.625% $1,009.0625$1,000 (1) What are the zero prices for the 6-month, the 1-year, the 18-month, and the 2-year Treasury securities above, respectively? Zero Price (A=984.15, B=966.41, C=943.68, D=921.93) (4) Given the zero prices obtained in (1) above, what should be the price of a 2-year T-note with 7.5% annual coupon (also paid semi-annually) with $1,000 par value per share?
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