Today is the 17th February 2006 and the prices of -year, 1-year and 1-year strips (all $100

Today is the 17th February 2006 and the prices of ½-year, 1-year and 1½-year strips (all $100 face value) are $97, $89 and $88 respectively. These prices imply yields (expressed as APRs with semi-annual compounding) of 6.186%, 12.000% and 8.706% respectively. 

What is the price today of a 12% Aug 2007 Treasury note ($100 par)?

Answer rating: 100% (QA)

To calculate the price of a Treasury note we can use the concept of present value The price of a bond is the present value of its future cash flows wh... View the full answer