A us government t-note with a 3-year maturity has a coupon, Ask an Expert

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A U.S. Government T-Note with a 3-year maturity has a coupon rate of 4% 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?

Treasury Spot Rates

Term Rate

T= 1 9.64%

T=2 6.14%

T=3 4.07%

The price of the coupon bond is? (round to the nearest cent)

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92706816

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