Question: 4 . A 1 0 - year US Government bond with face value of $ 1 , 0 0 0 pays a yearly coupon of
A year US Government bond with face value of $ pays a yearly coupon of
a Calculate the present value of each coupon payment from year to year
b If this bond sells today for $present value what is the yield if there were no coupons?
c What is the overall yield considering it also pays yearly coupons?
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