Assume that a $1,000,000 par value, semiannual coupon U.S. Treasury note with two years to...
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Assume that a $1,000,000 par value, semiannual coupon U.S. Treasury note with two years to maturity (YTM) has a coupon rate of 3%. The yield to maturity of the bond is 11.00%. Using this information and ignoring the other costs involved, calculate the value of the note.
a. $730,824.90
b. $859,794.00
c. $1,031,752.80
d. $541,670.22
Based on your calculations and understanding of semiannual coupon bonds, complete the following statements:
Assuming that interest rates remain constant, the T-note's price is expected to ___________________.
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