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Two years ago, the US Treasury issued 10-year bonds with the following characteristics: - $1,000 par value -$12 coupon paid semiannually (SA) ($6 is paid
Two years ago, the US Treasury issued 10-year bonds with the following characteristics: - $1,000 par value -$12 coupon paid semiannually (SA) ($6 is paid every six months, totaling $12 paid every year) -A 10-year maturity (These bonds were issued in 2020 and mature in 2030, thus they now have 8 years left until maturity) Now, due to inflation, and the Federal Reserve's reversal from an accommodative policy of 0% short-term interest rates with quantitative easing (QE) to a restrictive policy of increased short-term interest rates with quantitative tightening (QT), the yield-to-maturity on the same 10-year bond issuance discussed above is currently 2.90% annual. Based on the information above, what is the market price today of the 10-year US Treasury bonds? O (a) $772.37 O (b) $879.40 O (c) $955.20 O (d) $1,056.20
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