Poll: Suppose the U.S. government raised funds w/ a special treasury security that pays a coupon guaranteed to be equal to the aggregate dividend of the S&P 500. Right now, that's ~$14 per quarter, $56 for the year. What price would the treasury security trade at?
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I think the "government guaranteed to be equal to SPX dividend" phrase is throwing you off here. Owning a security w/ such a guarantee is not worth anything extra relative to direct SPX ownership since, trivially, SPX is also guaranteed to pay dividend equal to SPX dividend.
No, this is wrong. Your reasoning is valid for a single stock but fails for an index, since index constituents can be replaced.
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For your hypothetical security to be the same as SPX, it would also need to suffer a reduction in face value whenever the stock price of SPX constituents falls.
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