Question: 3 . Consider a 4 percent coupon U . S . Treasury note that has a $ 5 0 , 0 0 0 face value

3. Consider a 4 percent coupon U.S. Treasury note that has a $50,000 face value and matures 10 years from today. This note pays interest semiannually. The current market interest rate on this bond is 3 percent. Would you expect the bond to be discount, premium, or par bond? Calculate the actual price of the bond using the present value formula.

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