Question: Chapter 6 - Q2: Please answer the following questions in the IMAGE below: Assume that the six-month Treasury spot rate is 1.6% APR, and the

Chapter 6 - Q2: Please answer the following questions in the IMAGE below:

Chapter 6 - Q2: Please answer the following questions in the IMAGE

Assume that the six-month Treasury spot rate is 1.6% APR, and the one-year rate is 2.1% APR, both compounded semiannually. What is the price of a one-y $1,000 par Treasury bond with 2.1% coupons? The price of the Treasury bond is $ (Round to the nearest cent.)

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