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You are analyzing a 3.5% Treasury bond that matures in 18 years, pays semi-annual coupons (next payment is in 6 months)

Posted: Wed May 18, 2022 10:27 pm
by answerhappygod
You are analyzing a 3.5% Treasury bond that matures in
18 years, pays semi-annual coupons (next payment is in 6 months)
and currently yields 4% p.a. The face value of the bond is $1,000.
What is the value of the bond today?
Select one:
a.$905
b.$936
c.$575