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FINANCE 1 answer below » Assume that a $1,00,000 par value, semiannual coupon U.S. Treasury note with five years to maturity (YTM) has a coupon rate of 5%. The yield to maturity of the
bond is 11.00%. Using ths information and ignoring the other costs involved, the value of the T-note is calculated as $773,871.23 Based on this calculation and an understanding of semiannual coupon bonds, complete the following statements: 1. Assuming the interest rates remain constant, the T-notes price is expected to _____________. (Increase or Decrease) Please Explain Why. 2. The T-note described is selling at a ___ View complete question » Assume that a $1,00,000 par value, semiannual coupon U.S. Treasury note with five years to maturity (YTM) has a coupon rate of 5%. The yield to maturity of the
bond is 11.00%. Using ths information and ignoring the other costs involved, the value of the T-note is calculated as $773,871.23 Based on this calculation and an understanding of semiannual coupon bonds, complete the following statements: 1. Assuming the interest rates remain constant, the T-notes price is expected to _____________. (Increase or Decrease) Please Explain Why. 2. The T-note described is selling at a ________________. (Premium or Discount) Please Explain Why. 3. When valuing a semiannual coupon bond, the time period N in the present value formula used to calculate the price of the bond is treated in terms of
____________ periods. (Annual, 6 month, 4 month, 12 month) View less » Jan 18 2014 03:05 AM
