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You have decided to purchase a $1,000 Face Value, 20-year Treasury-bond. The 20-year T-bond has a 2% annual coupon rate with semi-annual coupon payments. The
You have decided to purchase a $1,000 Face Value, 20-year Treasury-bond. The 20-year T-bond has a 2% annual coupon rate with semi-annual coupon payments. The current Yield to Maturity (YTM) is equal to 1.75%. ANSWER the following three (3) questions a. - C. a. What is the current market price of this T-bond? b. What is the modified duration of this T-bond c. If the market price of this 20-year T-bond were equal to 102% of the Face Value, then what is the Yield to Maturity (YTM) of this T-bond
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