Question

if you buy a $10,000 U.S. Treasury bond ('T note') with a 2.5% coupon rate that pays semi-annually, what will be your yield after the first six months? what will your par value be when it matures?

Answer 1

Answer: The U.S. Treasury Series I Savings Bonds are 30-year instruments whose interest rate is reset every six months and are a way to help protect one from inflation. The rate is a combination of an inflation calculation over a six-month timeframe and a fixed rate determined by the Treasury Secretary. With inflation increasing this year to multi-decade highs, the inflation calculation for I Bonds bought until April 30, 2022, pay 7.12% for six months.

Explanation: i hope this helps :)