Problema us government 2-year t-note has a face value of, Ask an Expert

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Problem:

A US Government 2-year T-Note has a face value of $1,000 and pays annual coupons of $70. The first coupon is due in one year. What is the correct price for the coupon bond today? Use the term structure of interest rates shown below.

Term	Spot Rate
1-year	5.5%
2-years	9.0%

The correct price for the coupon bond today is $______.

Note: Explain all calculation and formulas.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91148025

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