Question: You bought a 10-year T-note with a par value 0f$1,000 and a 4percent coupon rate (assume coupons are paid annual) when it wasoriginally issued. On
You bought a 10-year T-note with a par value 0f$1,000 and a 4percent coupon rate (assume coupons are paid annual) when it wasoriginally issued. On that date it sold at par. You held it for two years, and sold it after collecting the first 2 coupon payments. If youractual annualized rate of return on your investment was 5 percent,what was the price at which you sold the T-note? (HINT: You canfind the answer by simply applying the bond pricing formula.)(A)$979.60(B)$1020.50(C)$1028.57(D)$1057.69
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