if a treasury note with two years remaining to maturity has a 5% semiannual coupon and is priced at $1,008, the note is:

Respuesta :

if a treasury note with two years remaining to, the note is underpriced.

Treasury notes may mature in two to 10 years if interest is paid every two years. Treasury bonds are a safe way to invest your money. While there are various types of bonds, purchasing 2-year Treasury bonds has certain unique advantages. Utilizing the secondary market, savvy investors can build a Treasury ladder to maximize their returns. Treasury bonds might be a great investment for people looking for safety and a fixed rate of interest that is paid semi-annually until the bond's maturity. Bonds are a key component of an investment portfolio's asset allocation since they provide a steady return that helps to offset the volatility of equity prices.

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