You bought a 4.607% at 97.70 30-year U.S. Treasury bond in May. By December of the...

 

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You bought a "4.607% at 97.70" 30-year U.S. Treasury bond in May. By December of the same year, the bond price reached 110.14%. What is your holding-period return if you sell the bond in December? Note: it is conventional that U.S. Treasury bonds have a face value of $1,000. You bought a "4.607% at 97.70" 30-year U.S. Treasury bond in May. By December of the same year, the bond price reached 110.14%. What is your holding-period return if you sell the bond in December? Note: it is conventional that U.S. Treasury bonds have a face value of $1,000.

Answer rating: 100% (QA)

Given Initial bond price 9770 of face value 1000 977 Final bond price 11014 of face value 1000 11014... View the full answer