Exactly two years ago, the U.S. Treasury issued 10-year Treasury notes at par value with a coupon rate of 2.50%. The Face Value of one of these notes was $10,000. Today, you want to purchase that $10.000 (face value) Treasury note. A bond dealer will sell it to you for $9,850.00. If you buy the bond and hold it to maturity, what is the yield (YTM) you will have earned?

Answer rating: 100% (QA)

To calculate the yield to maturity YTM of the Treasury note we can use the formula for YTM which con... View the full answer