Carlina operates an automobile parts manufacturing plant in chillicothe, ohio. she has automotive customers in michigan, ohio, tennessee, georgia and indiana. because most of her customers insist on just in time inventory management she needs to know exactly when the shipments of her product to the customer will arrive. carlina uses transportation for this part of her business.

Bonds often pay a coupon twice a year. for the valuation of bonds that make semiannual payments, the number of periods doubles, whereas the amount of cash flow decreases by half. using the values of cash flows and number of periods, the valuation model is adjusted accordingly. assume that a $1,000,000 par value, semiannual coupon us treasury note with three years to maturity has a coupon rate of 3%. the yield to maturity (ytm) of the bond is 7.70%. using this information and ignoring the other costs involved, calculate the value of the treasury note: