Answer:
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
