After a Treasury auction of the 10-year Treasury note, you noticed that the high yield of...
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After a Treasury auction of the 10-year Treasury note, you noticed that the high yield of this bond is at 3.85%. Answer the following questions: a) What would be the coupon rate of this bond? b) What would be the price of this bond? (Assuming coupons are paid semi-annually, and the par value is $1,000). After a Treasury auction of the 10-year Treasury note, you noticed that the high yield of this bond is at 3.85%. Answer the following questions: a) What would be the coupon rate of this bond? b) What would be the price of this bond? (Assuming coupons are paid semi-annually, and the par value is $1,000).
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a The coupon rate of a bond is the fixed interest rate that the issuer pays to the bondholders The c... View the full answer
Related Book For
Ethics in Accounting A Decision Making Approach
ISBN: 978-1118928332
1st edition
Authors: Gordon Klein
Posted Date:
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