Calculate the value of the treasury note

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Reference no: EM131981001

Assume that a $1,000,000 par value. semiannual coupon U.S. Treasury note with two years to maturity (YTM) has a coupon rate of 6%. The yeild to maturity of the bond is 8.80%. Using this information and ignoring the other cosr involved, calculate the value of the Treasury note?

Based on your calculation and understanding of semiannual coupon bonds, complete the following statement: Assuming that interest rates remain constant, the T-note's price is expected to----- (decrease or increase )?

Reference no: EM131981001

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