You are eyeing an investment in Treasury Notes for a full lot (i.e. PAR=$100,000), and find...

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You are eyeing an investment in Treasury Notes for a full lot (i.e. PAR=$100,000), and find...

You are eyeing an investment in Treasury Notes for a full lot (i.e. PAR=$100,000), and find a note with a maturity of 100 years. This particular Treasury has a YTM of 2.21%, and a stated rate of interest of 2.07% with a maturity of 100 years. The market price of this treasury is closest to?

a. $52,807.15

b. $94,368.57

c. $94,377.02

d. $177,633.30

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Answer 1

Answer #1

The market price is calculated using the PV function as follows:-

=PV(rate,nper,pmt,fv)

=PV(2.21%,100,2.07%*100000,100000)

=94377.02

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Answer 2

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