On Jan 22, 2020 YTM of available 10-year treasury note is 1.70% (annualized rate), with coupon rate of 1.12% (annualized rate). Coupon is paid every 6 months. 6 months later the YTM of the same bond drops to 0.64% (right before the first coupon payment). Assuming the maturity date of the bond is Jan 22, 2030. What is the bond price on Jan 22, 2020?
On Jan 22, 2020 YTM of available 10-year treasury note is 1.70% (annualized rate), with coupon rate of 1.12% (annualized rate). Coupon is paid every 6 months. 6 months later the YTM of the same bond drops to 0.64% (right before the first coupon payment). Assuming the maturity date of the bond is Jan 22, 2030. What is the bond price on Jan 22, 2020?
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
Problem 4P
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On Jan 22, 2020 YTM of available 10-year treasury note is 1.70% (annualized rate), with coupon rate of 1.12% (annualized rate). Coupon is paid every 6 months. 6 months later the YTM of the same bond drops to 0.64% (right before the first coupon payment). Assuming the maturity date of the bond is Jan 22, 2030.
What is the
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