Assume that a $1,000,000 par value, semiannual coupon US Treasury note with five years to maturity has a coupon rate of 6%. The yield to maturity (YTM) of the bond is 11.00%. Using this information and ignoring the other costs involved, calculate the value of the Treasury note:
a.) $841,635.85b.) $715,390.47c.) $530,230.59d.) $1,009,963.02Based on your calculations and understanding of semiannual coupon bonds, complete the following statement:When valuing a semiannual coupon bond, the time period variable (N) used to calculate the price of a bond reflects the number of (Options are: a.) 12-month, b.) 4-month, c.) annual, d.) 6-month) periods remaining in the bonds life.
+5
Answers (2)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Assume that a $1,000,000 par value, semiannual coupon US Treasury note with five years to maturity has a coupon rate of 6%. The yield to ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Home » Business » Assume that a $1,000,000 par value, semiannual coupon US Treasury note with five years to maturity has a coupon rate of 6%. The yield to maturity (YTM) of the bond is 11.00%.