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

Question

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The coupon payment on this bond is equal to the face value multiplied by the coupon rate: $1,000 x 0.075 = $75. Therefore, the correct choice is C.

The present value cannot be greater than the price, as the price represents the current market value of the bond. Additionally, we do not have enough information to determine the current yield. Lastly, the coupon payment cannot be equal to $90 as the coupon rate is 7.5%.

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