Calculate the price of a three-year treasury bond

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1. Calculate the PV of a 20-year California lottery pot paying $50,000 annually at the discount rate of 10%. Is it $1 million, why or why not?

2. Calculate the price of a three-year treasury bond/note paying 5% coupon on $1,000 face value at the discount rate of 3%. What type of bond is it, premium, par or discount?

Reference no: EM13872697

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Calculate the price of a three-year treasury bond : Calculate the PV of a 20-year California lottery pot paying $50,000 annually at the discount rate of 10%. Is it $1 million, why or why not? Calculate the price of a three-year treasury bond/note paying 5% coupon on $1,000 face value at the discount r..

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