A us government 2-year t-note has a face value of 1000 and


A US Government 2-year T-Note has a face value of $1,000 and pays annual coupons of $70. The first coupon is due in one year. What is the correct price for the coupon bond today? Use the term structure of interest rates shown below.

Term Spot Rate
1-year 5.5%
2-years 9.0%

 

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Finance Basics: A us government 2-year t-note has a face value of 1000 and
Reference No:- TGS0610302

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