Exam #1 - Pennsylvania State University

The current interest rate on a 2 year T-note is 1.6%. Calculate the price of this bond and show that it is close to the price quote in stock trak . b) (10 points) Suppose that you purchased a 3 year government security (face value = $1000) where the interest rate was 1.31% with the coupon rate = 3%. ................
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