What is price that you will pay for this bond

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Reference no: EM132069439

You are considering buying a 10-year U.S. Treasury bond at the upcoming Treasury auction. Assume that the bond has the following features:

coupon rate: 2.94%, with semi-annual coupon payments

Face value: $1,000

matures in 10 years

In the auction, the annual yield to maturity determined by the auction is 3.05%.

What is the price that you will pay for this bond?

Do not round at intermediate steps in your calculation. Round your answer to the nearest penny. Do NOT include a minus sign! Do not type the $ symbol.

Reference no: EM132069439

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