Question: A 1-year T-note, face value $100, paying a coupon rate of 8% p.a., trading at a yield to maturity of 6% p.a. (semi annual compounding).

A 1-year T-note, face value $100, paying a coupon rate of 8% p.a., trading at a yield to maturity of 6% p.a. (semi annual compounding).

In addition to the above information, it is given that a 0.5 year T-note, paying a coupon rate of 4% p.a., is trading at par.

What is the price of a one-year zero coupon bond with a face value of $ 100?

What is the price of a one-year T-note, with a face value of $ 100, paying a coupon rate of 4% p.a.?

Show the necessary computation.

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