A 10-year U.S. Treasury bond with a face value of $1,000 o§ers a coupon of 5.5% per annum (pa) (2.75% of face value every six months). The reported yield to maturity is 5.2% pa (Note: compound using the six-month discount rate of 5.2/2 = 2.6%). (a) What is the PV of this bond? (b) What is the PV if the yield to maturity increases to 5.8% pa?

A 10-year U.S. Treasury bond with a face value of $1,000 o§ers a coupon of 5.5% per annum (pa) (2.75% of face value every six months). The reported yield to maturity is 5.2% pa (Note: compound using the six-month discount rate of 5.2/2 = 2.6%). (a) What is the PV of this bond? (b) What is the PV if the yield to maturity increases to 5.8% pa?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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