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A 10-Year Treasury Note as a Face Value of $1,000

Question 13

Multiple Choice

A 10-year Treasury note as a face value of $1,000, price of $1,200, and a 7.5% coupon rate. Based on this information, we know the:


A) present value is greater than its price.
B) current yield is equal to 8.33%.
C) coupon payment on this bond is equal to $75.
D) coupon payment on this bond is equal to $90.

Correct Answer:

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