Question: use excel to explainAssuming markets are operating efficiently, use the current Information to answer the question. Current Market Information: Zero Coupon US Treasury Bond Prices

use excel to explainAssuming markets are operating efficiently, use the current Information to answer the question.
Current Market Information:
Zero Coupon US Treasury Bond Prices
Today you purchase a new 12.0% Coupon bond (semi-annual pmts.) issued by the US Treasury. The bond
matures in 20 yrs. You buy the bond today at fair value and over the following 10 years, the Federal
Reserve reduces Treasury rates at every maturity by -100bp or -1.0%. What is the realized return on your
easury bond investment over the 10yr holding period, assuming you sell for fair value?
Answer:
use excel to explainAssuming markets are operating efficiently, use the current

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