T-Bond Face Value $20,000 Coupon Rate 4.50% Current YTM 3.00% Remaining Term on T-Bond in years...

	T-Bond Face Value	$20,000
	Coupon Rate	4.50%
	Current YTM	3.00%
	Remaining Term on T-Bond in years	22
	Annual Investment in stock fund	$2,750.00
	Annual Return on Stock Fund	6.25%
	Jenna's current age	22
	Desired retirement age	63
	Planned life expectancy ( age in years)	96
	Jenna's expected annual salary increases for Q7	3.25%
	Inflation Rate for Q7	2.75%
	Current Coca-Cola Stock Price for Q9	53.48
	Coca-Cola Annual Dividend (just paid)	$1.60
	Cocal-Cola Expected Dividend Growth	4%
Suppose Jenna’s Treasury bond has a coupon interest rate of 4.5%, paid semiannually, while current Treasury bonds with the same maturity date have a yield to maturity of 3.00 % (expressed as an APR with semiannual compounding). If she has just received the bond’s 16th coupon, what is the value of Jenna’s Treasury Bond today?

Expert Solution

jeff jeffy answered 10 months ago

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