Homework Answers
a)
Annual coupon payment = 0.035 x $ 1,000.00
Annual coupon payment = $ 35.00
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b)
The life of the T-note is 10 years
The total interest paid over the life of the T-note = $ 35.00 x 10 years
Total amount of interest paid over the life of the T-note = $ 350.00
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