Given a 15-year bond that sold for 1000 with 9 coupon rate

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Q1Assume a $1000 Treasury bill is quoted to pay 5% interest over a six month period.

a.    How much interest would the investor receive?
b.    What will be the price of the Treasury bill?
c.    What will be the effective yield?

Q2Given a 15-year bond that sold for $1000 with 9% coupon rate, what would be the price of the bond if interest rates in the marketplace on similar bonds are now 12%? Interest is paid semiannually.

Reference no: EM13395131

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