Suppose that a parcel of 5.75% 15 July 2022 Treasury bonds was purchased at 5% on...
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Suppose that a parcel of 5.75% 15 July 2022 Treasury bonds was purchased at 5% on 15 July 2015 and then sold on 15 July 2017 at a yield of 6%. Assume a face value of $100 per bond. If the coupons were reinvested at 5.5% per annum, calculate the investor's holding-period yield (as a percentage). Round your final answer to 2 decimal places. Suppose that a parcel of 5.75% 15 July 2022 Treasury bonds was purchased at 5% on 15 July 2015 and then sold on 15 July 2017 at a yield of 6%. Assume a face value of $100 per bond. If the coupons were reinvested at 5.5% per annum, calculate the investor's holding-period yield (as a percentage). Round your final answer to 2 decimal places.
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Answer rating: 100% (QA)
To calculate the investors holdingperiod yield we need to consider the purchase price the sale price ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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