Q1. Consider the following par bond (ie coupon rate=yield): Year: 10 and 20 years . Yld 1.50% and 2.0%

Q1c. if you hold the 20Y for 1 year, what is your total return from the investment assuming yld curve does not change ?

Hint: your total return comes from coupon collection as well as price appreciation or depreciation

Answer rating: 100% (QA)

To calculate the total return from holding the 20year bond for 1 year we need to consider both the c... View the full answer