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 3 hours ago

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