Ou spend days wandering aimlessly around a park with many different paths that end at different parts of the park. one day when you arrive at the park, you get a call on your cell phone from your cousin whom you haven't seen for years, and she says she is waiting for you in a particular section of the park. even though the paths are complicated and twisted, you manage to find the shortest route to your cousin. tolman would explain your efficient passage through the park as an example of

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: