A U.S.Treasury bond has a face value of $5,000,a coupon rate of 3 percent compounded semiannually,a yield to maturity of 2.97 percent,and 7 years until maturity.What is the clean price quote of this bond?

Question

Quizplus · Accepted Answer

Bond value = [(0.03 × $5,000)/2] × ({1 - 1/[1 + (0.0297/2)]^7×2}/(0.0297/2))+ {$5,000/[1 + (0.0297/2)]^7×2} = $5,009.42 11ea5bb7_de33_f057_8724_cd264618f212_TB1005_00

A USTreasury Bond Has a Face Value of $5,000,a Coupon Rate