Using Alonsos forecasted price and the bond information in Exhibit 2 , the expected 6-month total return

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Using Alonso’s forecasted price and the bond information in Exhibit 2 , the expected 6-month total return of the Treasury 4.125% 15 May 2011 is closest to (assume zero accrued interest at purchase):

A . −0.90%.

B . 1.15%.

C . 1.56%.

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Fixed Income Analysis

ISBN: 9788126563128

3rd Edition

Authors: Barbara S. Petitt, Jerald E. Pinto, Wendy L. Pirie, Bob Kopprasch

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