Suppose that five years ago today, you bought a 6% ten-year treasury bond (face value= $100, annual coupon payments) at a yield of 3.5% per year. Since then, you have deposited the coupons in a bank at 2% per year. Today you sell the bond at a yield of 5% per year. 

What is the annualized return on your investment?

Answer rating: 100% (QA)

To calculate the annualized return on your investment we can use the concept of the timeweighted rat... View the full answer