Question
22 On 14 February 2016 the government issued a treasury bond with a maturity of 10 years and a nominal value of $1,000. The coupon
22 On 14 February 2016 the government issued a treasury bond with a maturity of 10 years and a nominal value of $1,000. The coupon rate is 4%. On 14 February 2021, the exchange rate of the bond was $1,140 and thus, the flat yield was calculated to be 3.51%. Calculate the effective yield.
A 3.51% B 1.05% C 5.97% D 2.46%
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Fundamentals of Investment Management
Authors: Geoffrey Hirt, Stanley Block
10th edition
0078034620, 978-0078034626
