Question
You are considering buying a 10-year U.S. Treasury bond at the upcoming Treasury auction. Assume that the bond has the following features: coupon rate: 2.88%,
You are considering buying a 10-year U.S. Treasury bond at the upcoming Treasury auction. Assume that the bond has the following features:
- coupon rate: 2.88%, with semi-annual coupon payments
- Face value: $1,000
- matures in 10 years
In the auction, the annual yield to maturity determined by the auction is 3.05%.
What is the price that you will pay for this bond?
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International Business Finance
Authors: Michael Connolly
1st Edition
0415701538, 9780415701532
