Question: Today is December 3 0 t h , 2 0 2 3 . You decide to purchase Bond A , which has just been issued
Today is December You decide to purchase Bond A which has just been issued on December
Bond A is US Treasury bond that pays back a par value of USD at its maturity on June
It pays coupons based on a coupon rate of and its first coupon payment will occur on
June On December all interest rates are constant at a semiannual value of
However, suppose that you expect interest rates to change right after the payment of the second
coupon on December when you expect them to decrease and remain constant at
semiannually. What is the expected realized yield, in semiannual terms, for a buy and hold investor
from December th until June th
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