Using the regular Treasury note of problem 2 a) What is its price if investors required rate of return is 6 on similar bonds Treasury notes pay interest semiannually b) Erron Corporation wants to issue five year notes but investors require a credit risk spread of three percentage points What is the anticipated coupon rate on the Erron notes

Question: Using the regular Treasury note of problem 2; a) What is its price if investors required rate of return is 6 % on similar bonds?

Using the regular Treasury note of problem 2;
a) What is its price if investors’ required rate of return is 6 % on similar bonds? Treasury notes pay interest semiannually.
b) Erron wants to issue five-year notes but investors require a credit risk spread of three percentage points. What is the anticipated rate on the Erron notes?

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