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What would be the value of this treasury bond

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Reference no: EM132404390

A Treasury bond has a coupon rate of 10%, a face value of USD 1,000, matures 5 years from today and the yield to maturity is equivalent to 8%. What would be the value of this treasury bond?

Remember: Coupons are paid semiannually (twice a year) as well as YTM is calculated divided by the periods (on this case by 2).

Reference no: EM132404390

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