Assume that a $1,000,000 par vaue, semiannual coupon US treasury note with three years to maturity has a coupon rate of 5%. The yield to maturity of the bond is 8.80%. Usng this information and ignoring the other costs involved, calculate the value of the treasury note:
a) $568,060.56
b) $901,683.43
c) 766430.92
d) 1,082,020.12
Based on your calculatioons and understanding of semiannual coupon bonds, complete the following statement:
The T-note described in this problem is selling at a _________
Possible answers are (discount or premium)