On 19 May 2022, you have been offered a US treasury note. The note has a...
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On 19 May 2022, you have been offered a US treasury note. The note has a face value of $100,000 and price of $90,564. The note matures on 15 January 2030 and pays semiannual coupon. The quarterly coupon rate is 1.25%. The note was issued in 15 January 2020 and its market price was $90,000. (Write your answers below) 1) What is the annualized yield to maturity using two different methods? - 2) The note is callable on 17 May 2025. Calculate the yield to maturity using two excel functions. Explain the slightly different results On 19 May 2022, you have been offered a US treasury note. The note has a face value of $100,000 and price of $90,564. The note matures on 15 January 2030 and pays semiannual coupon. The quarterly coupon rate is 1.25%. The note was issued in 15 January 2020 and its market price was $90,000. (Write your answers below) 1) What is the annualized yield to maturity using two different methods? - 2) The note is callable on 17 May 2025. Calculate the yield to maturity using two excel functions. Explain the slightly different results
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Answer rating: 100% (QA)
1 To calculate the annualized yield to maturity using two different methods we can use the Yield function in Excel and the Yield to Maturity formula a ... View the full answer
Related Book For
Fundamentals Of Financial Management
ISBN: 9780273713630
13th Revised Edition
Authors: James Van Horne, John Wachowicz
Posted Date:
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