Q1. Consider the following par bond (ie coupon rate=yield): Year: 10 and 20 years . Yld 1.50%
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Q1. Consider the following par bond (ie coupon rate=yield): Year: 10 and 20 years . Yld 1.50% and 2.0%
Q1c. if you hold the 20Y for 1 year, what is your total return from the investment assuming yld curve does not change ?
Hint: your total return comes from coupon collection as well as price appreciation or depreciation
Related Book For
Fundamentals of Investments Valuation and Management
ISBN: 978-0077283292
5th edition
Authors: Bradford D. Jordan, Thomas W. Miller
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