Therefore are offered at a different price and yield

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A treasury note with a coupon rate of 3% and expiring on February 15, 2020 has a current bid quote of 98-31. Another treasury note also expiring on February 15, 2020 offers a coupon rate of 5% and has a current bid quote of 99-01. Explain why these two treasury notes, which expire on the same date, pay a different coupon, and therefore are offered at a different price and yield.

Reference no: EM131921548

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