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5) The graph below is the yield chart of 5 year German Goverment Bond in Euros. As it is seen from the chart; 5 year
5) The graph below is the yield chart of 5 year German Goverment Bond in Euros. As it is seen from the chart; 5 year German government bond was trading at yield of -0.40% 1 month ago. The current yield to maturity is -0.75% If you purchase this bond now and hold it to maturity, would you make a profit or loss? How much profit or loss would you make in terms of annulized yield? Can you make profit if you trade with this bond during 1 month? Explain briefly 5) The graph below is the yield chart of 5 year German Goverment Bond in Euros. As it is seen from the chart; 5 year German government bond was trading at yield of -0.40% 1 month ago. The current yield to maturity is -0.75% If you purchase this bond now and hold it to maturity, would you make a profit or loss? How much profit or loss would you make in terms of annulized yield? Can you make profit if you trade with this bond during 1 month? Explain briefly
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