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Solution
1:
United states treasury bonds pays semi annual interest on face value of bond.
Rate of interest for UST 2.75 due 11/15/47 = 2.75%
Par value = $100
Periodic coupon payment = p * r* t = 100*2.75%*6/12 = $1.375

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Solution 1United states treasury bonds pays semi annual interest .pdf

  • 1. Solution 1: United states treasury bonds pays semi annual interest on face value of bond. Rate of interest for UST 2.75 due 11/15/47 = 2.75% Par value = $100 Periodic coupon payment = p * r* t = 100*2.75%*6/12 = $1.375