Suppose we have a flat yield curve of 3%. What is the price of a Treasury bond
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Suppose we have a flat yield curve of 3%. What is the price of a Treasury bond of remaining maturity seven years that pays a coupon of 4%? (Coupons are paid semiannually.) What is the price of a six-month Treasury bond futures contract? Make any assumption you require concerning the maturity of the delivered bond and this price.
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Assuming the last coupon was just paid the price of a the remaining sevenyear maturity bond with cou...View the full answer
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