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Treasury model - Dr. K's mother (as an investor, not a dealer) uses her $500,000 to buy Treasury bonds. Assume the bonds have 25 years

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Treasury model - Dr. K's mother (as an investor, not a dealer) uses her $500,000 to buy Treasury bonds. Assume the bonds have 25 years to maturity, a 3.600% coupon rate, a bid price of 111, and an asked price of 112. For a discussion on Treasury bond prices, see "Primer on how to read Treasury bond quotes" on Canvas. Take your time to read this article as it will explain the bid price and asked price. What would be her annual interest income? What would be her monthly interest income? (Hint: you can just divide the annual interest income by 12.) What would be her year one anmal withdrawal rate (to two decimal places)? Page 3 Finance 333, Financial Markets annual interest income monthly interest income annual withdrawal rate

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