3. (20 points) You can buy or sell a 3.5% coupon $1,000 par U. S. Treasury Note that matures in 6 years. The first coupon payment pays 6 months from now, and the Note pays coupons semi-annually until maturity. It also pays par on maturity. The Yield to Maturity of the Note right now (treat this as your discount rate) is 3.000%. (a) What are the cash flows associated with this Note

Cash flows associated with the Note are 12 semiannual coupon payments of $17.50 each and the face value of $1,000

Explanation:

The cash flows of the note comprise of the semiannual coupon payments for 6 years ,which is 12 semiannual coupon payments, since 2 semiannual coupon payments would be made in each of the 6 years until maturity of the  U.S. Treasury Note as well as the face value of the note , which is $1000 payable to the investors in the note at maturity.

semiannual coupon payment=face value*coupon rate*6/12

face value=$1,000

coupon rate=3.5%

semiannual coupon payment=$1000*3.5%*6/12

semiannual coupon payment=$17.50

face value=$1000

b. a single paragraph.

a paragraph is a series of sentences that are organized and make sense, and are all related to a single topic . almost every piece of writing you do that is longer than a few sentences should be organized into paragraphs. this is because paragraphs show a reader where the subdivisions of an essay begin and end, and thus the reader see the organization of the essay into subjects in order to be able to understand its main points.

answer; private store;