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What is the value of a 3-year (semiannual) Treasury note with an 8 % coupon rate and a face value of $100? The spot rates
What is the value of a 3-year (semiannual) Treasury note with an 8 % coupon rate and a face value of $100? The spot rates are as follows. (Note: Spot rates are expressed as annualized rates on a bond equivalent yield basis.) 0.5 year: 2.4% 2 year: 5.4% 1 year: 4.2% 2.5 year: 5.6% 1.5 year: 4.8% 3 year: 6.2%
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