Question: Self-assessment question:consider a treasury bond with 8 years to maturity, coupon rate 4%, face value $100 and a quoted yield of 3.90%. If coupons are

Self-assessment question:consider a treasury bond with 8 years to maturity, coupon rate 4%, face value $100 and a quoted yield of 3.90%. If coupons are paid semi-annually, show that the bond price is 100.68.

[HINT: your formula for valuing an annuity should come in handy here.]

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