Looking at The Wall Street Journal you observe that the settlement price on a hypothetical 10-year,semiannual payment,6% coupon Treasury note is 105-21.If the note has a $1,000 par value,what is the implied Treasury note rate?
A)5.27%
B)5.53%
C)5.80%
D)6.10%
E)6.40%

Question

Quizplus · Accepted Answer

The settlement price of 105-21 translates to 105.65625% of the par value, or $1,056.5625. The coupon payment is $60 annually ($30 semiannually). Using the formula for yield to maturity (YTM) on a bond, the implied rate is approximately 5.27%.

Looking at the Wall Street Journal You Observe That the Settlement