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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 now 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 por value, semiannual coupon us Treasury note with five years to maturity has a coupon rate of 3%, The yied to maturity (rTM) of the bond is 8.80%. Using this information and ignoring the other costs involved, caiculate the value of the Treasury note: Eased on your calculations and understanding of semiannual coupon bonds, complete the following statement: When valuing a semianmul coupon bond, the time period variable (N) used to caiculote the price of a bond roflects the number of penods remaining in the bonds life. 7. Waluing semiannual coupon bonds Bonds often poy a coupon twice a year. For the valuation of bonds that make semiannual parments, the narnther of periods doubles, whereas the amount of cosh faw decresses by haif. Using the valuet of cash fows and number of periods, the yalustion modef is adjusted accordingir. Assume thit a 41,000,000 par value, semiannual coupon US Treasury note with five years to maturity has a coupon rate of Jwi. The yleld to maturity (YTM) of the bond is 8,606. Using this intormation and lgnoring the edher costs itwolved, calculate the vahie of the fressury note: 5419,721.211923,278.495760,398.745653,986.93 Besed on your calculabion and understanding of semisrisuai coubon bonds, conplete the folonang statementi When valung a semiantual cougon bond, the time pertod variabie(k) sed to caiculate the peice of a bond reflects the mursber of geriods inmaining in the bomals life

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