Calculate the actual price of the bond

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Using Microsoft Word, Consider a 4 percent coupon U.S. Treasury note that has a $10,000 face value and matures 10 years from today. This note pays interest semiannually. The current market interest rate on this bond is 3 percent. Would you expect the bond to be discount, premium, or par bond? Calculate the actual price of the bond using the present value formula. Show your work, show the formula, equation, and work being worked out in detail in a Microsoft Word Document.

Reference no: EM131760154

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