Question: . ( Extra Credit ) You work for the US Treasury and are in charge of setting the coupon rate on a T - note.

.(Extra Credit) You work for the US Treasury and are in charge of setting the coupon rate on a T-note. The maturity of the T-note will be 3 years and will pay semi-annual coupons. Suppose that the spot curve is the same as in question 4. If you want the bond to sell at par, i.e., price of the bond is $100, what should the coupon rate be?

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