Question: Fan buys a 3-year Treasury note. The note has a $1,000 face value and makes a $60 coupon payment each year. Can you calculate the

Fan buys a 3-year Treasury note. The note has a $1,000 face value and makes a $60 coupon payment each year. Can you calculate the present value for this Treasury note if the interest rate is 6%? . 


Fan buys a 3-year Treasury note. The note has a $1,000 face value and 6% coupon rate each year. Can you calculate the present value for this Treasury note if the interest rate is 4%? .

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

To calculate the present value of a Treasury note we can use the formula for the present value of a ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!