You have a 30-year Treasury of $1,000 face value that pays 4.4% coupons yearly and has 7.5 years left to maturity. The Yield to Maturity (YTM) of this bond is 5.2% per annum. What is its price?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
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You have a 30-year Treasury of $1,000 face value that pays 4.4% coupons yearly and has 7.5
years left to maturity. The Yield to Maturity (YTM) of this bond is 5.2% per annum. What is its
price?
Remember, by convention coupons are assumed to be paid twice a year unless otherwise
specified.
Transcribed Image Text:You have a 30-year Treasury of $1,000 face value that pays 4.4% coupons yearly and has 7.5 years left to maturity. The Yield to Maturity (YTM) of this bond is 5.2% per annum. What is its price? Remember, by convention coupons are assumed to be paid twice a year unless otherwise specified.
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