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You've been watching the markets and note that the price for the US Treasury 4-year notes, with a coupon rate of 5 5/8%, has risen

You've been watching the markets and note that the price for the US Treasury 4-year notes, with a coupon rate of 5 5/8%, has risen to $103.90 per $100 face value. Based on this change in price, the yield to maturity is closest to:

A.
4.5476%.

B.
4.5370%.

C.
2.2738%.

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Question

You've been watching the markets and note that the price for the US Treasury 4-year notes, with a coupon rate of 5 5/8%, has risen

You've been watching the markets and note that the price for the US Treasury 4-year notes, with a coupon rate of 5 5/8%, has risen to $103.90 per $100 face value. Based on this change in price, the yield to maturity is closest to: A. 4.5476%. B. 4.5370%. C. 2.2738%.

Step by Step Solution

Step: 1

Get Instant Access to Expert-Tailored Solutions

Step: 2

Step: 3

Ace Your Homework with AI

Recommended Textbook for

Financial Theory and Corporate Policy

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You've been watching the markets and note that the price for the US Treasury 4-year notes, with a coupon rate of 5 5/8%, has risen to $103.90 per $100 face value. Based on this change in price, the yield to maturity is closest to:

A.
4.5476%.

B.
4.5370%.

C.
2.2738%.