Question

A U.S. Government​ T-Note with a​ 3-year maturity has a coupon rate of 5​% and a...

A U.S. Government​ T-Note with a​ 3-year maturity has a coupon rate of 5​% and a face value of ​$1,000.  The coupons are paid annually and the next coupon is due in one year. Using the Treasury spot rates given in the table​ below, what is the price of the coupon​ bond? (Round to nearest cent.)

Treasury Spot Rates

Term

Rate

t=1

9.55​%

t=2

5.42​%

t=3

3.78​%

Homework Answers

Answer #2

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -

answered by: anonymous
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