The current market interest rate on this bond

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Reference no: EM131351761

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 making it have a present value of $10,874.67 when calculated using the pv formula. Would you expect the bond to be discount, premium, or par bond and why do you expect it?

Reference no: EM131351761

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