Consider a $1000 face value 3-year treasury with 2.5% annual coupon and a yield of 1.3%. Calculate
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Question:
Consider a $1000 face value 3-year treasury with 2.5% annual coupon and a yield of 1.3%.
- Calculate the price of the treasury note. $
- Is this treasury note selling at a discount or premium? Explain.
The treasury note is selling at a _____ because the calculated price is (above, below, equal to) ________ the face value of the note.
Related Book For
Corporate Finance
ISBN: 9781265533199
13th International Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
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