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On October 20, 2010, the 8 year treasury note has a bid price of 99:18, and...

On October 20, 2010, the 8 year treasury note has a bid price of 99:18, and an ask price of 99:20. The treasury note has a face value of $10,000, and a coupon rate of 5% made semiannually. The treasury note matures on October 19, 2015. What is the ask yield-to-maturity?

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Answer #1

Since the ask price is quoted as 99:20, that means it is being quoted as percent of face value here 99:20 means that( 99 + (2

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