I’m guessing the answer is D
The correct answer is 693.33333333.
Answer:
a.) $841,635.85
Explanation:
The value of the Treasury note is the present value of its future cash flows, its semiannual coupon payments and the face value receivable by the investors in the T-note at maturity.
Semiannual coupon=face value*coupon rate*6/12
face value=$1,000,000
coupon rate=6%
semiannual coupon=$1,000,000*6%*6/12
semiannual coupon=$30,000( there would 8 semiannual coupons in 4 years)
The present value of the cash flows can be determined using a financial calculator bearing in mind that the calculator would be set to its default end mode before making the following inputs:
N=8(semiannual coupons)
PMT=30000(amount of each semiannual coupon)
I/Y=5.50%(semiannual yield to maturity=11.00%*6/12)
FV=1000000(the face value of T-note)
CPT
PV=$841,635.85
The consumer price index measures the average price for a market basket of goods and services purchased by the typical consumer from one year to the next.
The Consumer Price Index (CPI) is a measure of the average change in prices paid by city consumers for a basket of consumer goods and services over time. Indexes are available in the United States and various regions.
The Consumer Price Index (CPI) is a measure of the total cost of goods and services purchased by the typical consumer. CPI is used to find the inflation rate. CPI is used in so many different ways that it affects almost every American.
Learn more about Consumer prices at
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since the price is so low the interest goes up because you paid just a little and so they want to get more off of that purchase.
Explanation: