Why will the effective yield on a GNMA bond be higher than that of a U S Treasury bond with the same quoted yield to maturity a b GNMA yields are figured on a 360 day basis GNMAS carry higher coupons C GNMAS have longer compounding periods GNMA interest is paid monthly d ...

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Why will the effective yield on a GNMA bond be higher than that of a U.S. Treasury

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Why will the effective yield on a GNMA bond be higher than that of a U.S. Treasury bond with the same quoted yield to maturity?

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Fundamentals Of Investments

ISBN: 9780072829198

3rd Edition

Authors: Charles J. Corrado

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Question Posted: May 30, 2024 10:03 AM

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Why will the effective yield on a GNMA bond be higher than that of a U.S. Treasury

Question:

a. b. GNMA yields are figured on a 360-day basis. GNMAS carry higher coupons. C. GNMAS have longer compounding periods. GNMA interest is paid monthly. d.

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Fundamentals Of Investments

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