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Showing how the bond present value changes for semiannually

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Reference no: EM132588425

Prices and yields A 10-year U.S. Treasury bond with a face value of $1,000 pays a coupon of 5.5% (2.75% of face value every six months). The reported yield to maturity is 5.2% (a six-month discount rate of 5.2/2 = 2.6%).

Question a. What is the present value of the bond?

Question b. Generate a graph or table showing how the bond's present value changes for semiannually compounded interest rates between 1% and 15%.

Reference no: EM132588425

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