uestion You own a US Treasury bond with seven years remaining in its life. It has a face value o $1,000,000 and a 5% annual coupon a e. The coupons are paid every six months and he next coupon payment is exact y six months o today. The current APR s 6% with se annual compounding Assume a flat yield curve so that the discount rate is the same tor a vestment terms e 8 ponts) Ho much will the bond be worth one yeart om today assum ng that interest ates are unchanged (i.e., 6% APR and semiannual compounding)? uestion : You own a US Treasury bond wit seven years remaining in its life. It has a face value of$1 000,000 and a 5% annual coupon rate. The coupons are paid every six months and the next coupon payment is exacty six months from today. The current APR is 6% with semiannual compounding. (Assume a flat yield curve so that the discount rate is the same for all investment terms.) How much will your bond be worth one year from today if the APR increases from 6% to 7% today