Question
1. On 15 March 2003, Jimmy purchased a three-year Treasury bond with face value $1000 and a 5% coupon (payable semiannually starting on 15 September
1. On 15 March 2003, Jimmy purchased a three-year Treasury bond with face value $1000 and a 5% coupon (payable semiannually starting on 15 September 2003). The price of the bond was $875. Jimmy sold the bond on 15 March 2004 for $925 after receiving the bond's coupon. What was Jimmy's ex-post annualized yield and what was Jimmy's ex-post monthly yield? (Use Excel to show all relevant cash flows and how the equations used to compute Ex-port annualized yield. If you use macros, please indicate them clearly in your excel and you may earn extra points). please show formulas
1 Date 2 3 15-Sep-03 4 Cash flows 15-Mar-03 15-Mar-04 6 Semiannual IRR 1 Date 2 3 15-Sep-03 4 Cash flows 15-Mar-03 15-Mar-04 6 Semiannual IRRStep by Step Solution
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