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A Treasury Note with a Maturity of 2 Years Pays

Question 41

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A Treasury Note with a maturity of 2 years pays interest semi-annually on a 9 percent annual coupon rate. The $1,000 face value is returned at maturity. If the effective annual yield for all maturities is 7 percent annually, what is the current price of the Treasury Note?

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The semi-annual spot...

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