Question: Suppose that a 5-year T-note is purchased with a face value of $20,000 and a coupon rate of 3.1%. (a) What is the total return

Suppose that a 5-year T-note is purchased with a face value of $20,000 and a coupon rate of 3.1%.

(a)

What is the total return of this investment?

(b)

What is the average rate of return?

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