Question: You decided to purchase $ 1 0 0 , 0 0 0 face value worth of Treasury bonds 6 years ago and decided to sell
You decided to purchase $ face value worth of Treasury bonds years ago and
decided to sell them today. The bonds have a coupon rate of They had years left to
maturity a bondequivalent yield of when you purchased them. The current bond
equivalent yield for year bonds is You reinvested the coupons in month securities
that pay a bondequivalent yield of annual rate What is your holding period return?
What is your return stated on a bond equivalent basis bond equivalent return
When you purchased it years ago, the coupon had just been paid before you purchased it
Also, you just received the coupon payment today before you sell it ie no accrued interest
to worry about
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