Question: Attempts Keep the Highest: /2 3. Valuing semiannual coupon bonds Bonds often pay a coupon twice a year. For the valuation of bonds that make

 Attempts Keep the Highest: /2 3. Valuing semiannual coupon bonds Bonds

Attempts Keep the Highest: /2 3. Valuing semiannual coupon bonds Bonds often pay a coupon twice a year. For the valuation of bonds that make semiannual payments, the number of periods doubles, whereas the amount of cash flow decreases by half. Using the values of cash flows and number of periods, the valuation model is adjusted accordingly Assume that a $1,000,000 par value, semiannual coupon U.S. Treasury note with three years to maturity (YTM) has a coupon rate of 5%. The yield to maturity of the bond is 9.90%. Using this it rmation and ignoring the other costs involved, calculate the value of the Treasury note: O $875,446.45 $1,050,535.74 O $744,129.48 O $551,531.26 Based on your calculations and understanding of semiannual coupon bonds, complete the following statement: The T-note described in this problem is selling at a Type here to search

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