Question: You buy a 3 - year Treasury note with a $ 1 0 0 0 face value, a 1 . 6 2 5 % annual
You buy a year Treasury note with a $ face value, a annual coupon, and a
yield to maturity of The Treasury note pays coupons semiannually.
A What is your year holding period return if you hold the bond until maturity?
Assume you can reinvest any coupons at the semiannual EPR and the current yield
to maturity of
B What is your year holding period return if you sell the bond after two years?
Assume you can reinvest any coupons at the semiannual EPR and the current yield
to maturity of
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