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You have purchased a $1,000,000 million Face or Par Value 5-year T-note. This 5-year T-note pays a 2.5% coupon (paid semi-annually) and has a current
You have purchased a $1,000,000 million Face or Par Value 5-year T-note. This 5-year T-note pays a 2.5% coupon (paid semi-annually) and has a current market price equal to 94.50% of Face or Par value ($945,000). Why would the price of this 5-year T-note decline? What is the current Yield to Maturity (YTM) of this 5-year T-note?
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