Suppose that a 2-year Treasury bond with a principle of 150 USD provides coupons at the rate of 4% per annum semiannually. If the risk-free interest rate is 2%, what is the bond’s price? (Hint: bond’s price is calculated by summation of the present value of all cash flows.)

Answer rating: 100% (QA)

The bonds price would be 15238 PV C 1r n M1 rt wher ... View the full answer