You have a treasury bond that pays $100 one year from today and $1,100 two years from today. You notice that the yield-to-maturity on a one year- zero coupon treasury bond is 1% and the yield-to- maturity on a two year-zero coupon treasury bond is 2%. What should the price of your bond be? 1, 177.44 1, 246.37 1, 156.30 1, 223.46 O O
You have a treasury bond that pays $100 one year from today and $1,100 two years from today. You notice that the yield-to-maturity on a one year- zero coupon treasury bond is 1% and the yield-to- maturity on a two year-zero coupon treasury bond is 2%. What should the price of your bond be? 1, 177.44 1, 246.37 1, 156.30 1, 223.46 O O
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 5MC: What would be the value of the bond described in Part d if, just after it had been issued, the...
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![You have a treasury bond that pays $100 one year
from today and $1, 100 two years from today.
You notice that the yield-to-maturity on a one year-
zero coupon treasury bond is 1% and the yield-to-
maturity on a two year-zero coupon treasury bond is
2%. What should the price of your bond be?
1, 177.44
1, 246.37
1, 156.30
1, 223.46](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7c2ba26f-94b8-4554-bb8d-0c37f9d0baad%2Fa8671e3a-d071-42f2-b3c7-1ba6d677f4d6%2Fjrpel_processed.jpeg&w=3840&q=75)
Transcribed Image Text:You have a treasury bond that pays $100 one year
from today and $1, 100 two years from today.
You notice that the yield-to-maturity on a one year-
zero coupon treasury bond is 1% and the yield-to-
maturity on a two year-zero coupon treasury bond is
2%. What should the price of your bond be?
1, 177.44
1, 246.37
1, 156.30
1, 223.46
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