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

question 127

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.

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Definitions:

Teams

Groups of individuals working together to achieve a common goal, often characterized by shared responsibilities and collaboration.

Variance

A measure of how much values in a data set deviate from the mean value.

Data

Information collected for reference or analysis, often numerical.

Squared Deviation

The squared differences between each observation and the mean, used as part of the calculation for variance.