A Treasury bond promises FV = $1,000 at the bond's maturity M = 15 years. The bond

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A Treasury bond promises FV = $1,000 at the bond's maturity M = 15 years. The bond pays an annual coupon rate of 8% semiannually.

Calculate the bond's market value.

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Fixed Income Analysis

ISBN: 9781119850540

5th Edition

Authors: Barbara S. Petitt

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Posted Date: Apr 29, 2024 03:56 AM

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A Treasury bond promises FV = $1,000 at the bond's maturity M = 15 years. The bond

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Expert Answer:

To calculate the market value of the Treasury bond we need to determine the present value of its cash flows The bond has a face value FV of 1000 a maturity period M of 15 years and pays a semiannual c... View the full answer

Fixed Income Analysis

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