Question: ANSWER ALL PARTS WITH FORMULAS AND NOT EXCEL FOR GOOD RATING CH5.EXAMPLE 5.2 P.114 Suppose you buy a $10,000 face value Treasury bond with quarterly

ANSWER ALL PARTS WITH FORMULAS AND NOT EXCEL FOR GOOD RATING

CH5.EXAMPLE 5.2 P.114 Suppose you buy a $10,000 face value Treasury bond with quarterly paid coupon rate of 10% per annum, maturing in six months for $9,700. On the bond's maturity date, you collect face value. Find the holding-period return. [Hint: HPR-4 -1] CFo b) Find the annual percentage rate. Hint: APR = Per period rate x Periods per year] AP c) Find the effective annual rate. [Hint:1+ EAR-(1+,n compounding periods in the year.l

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