A 1-year T-note, face value $100, paying a coupon rate of 8% p.a., trading at a yield
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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).
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.
Related Book For
Financial Institutions Management A Risk Management Approach
ISBN: 978-0071051590
8th edition
Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders
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