The yield to maturity of the bond is 880 calculate the


Assume that a $1,000,000 par vaue, semiannual coupon US treasury note with three years to maturity has a coupon rate of 5%. The yield to maturity of the bond is 8.80%. Usng this information and ignoring the other costs involved, calculate the value of the treasury note:

a) $568,060.56

b) $901,683.43

c) 766430.92

d) 1,082,020.12

Based on your calculatioons and understanding of semiannual coupon bonds, complete the following statement:

The T-note described in this problem is selling at a _________  

Possible answers are (discount or premium)

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Financial Management: The yield to maturity of the bond is 880 calculate the
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