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5) The graph below is the yield chart of 5 year German Government Bond in Euros. As it is seen from the chart, 5 year
5) The graph below is the yield chart of 5 year German Government 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. -0.406 -0.500 Mr -0.600 --0.700 -0.753 -0.800 --0.900
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