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You are currently holding a bond with 1 year to maturity. You want to sell the bond in 6 months

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You are currently holding a bond with 1 year to maturity. You want to sell the bond in 6 months immediately after you receive the coupon. The bond has an annual coupon rate of 3%, YTM = 3% and Face Value of $100. 6-month forward rate (from 6 months to 12 months) is 4%p.a.
What is the Holding Period Yield (annualised) on the bond over the next 6 months?

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Answer rating: 100% (QA)

To calculate the Holding Period Yield HPY on the bond over the next 6 months you need to consider th View the full answer


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Related Book For  answer-question
Introduction to Operations Research

Introduction to Operations Research

ISBN: 978-1259162985

10th edition

Authors: Frederick S. Hillier, Gerald J. Lieberman

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Posted Date: September 21, 2023 00:00:58

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