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additional info(if needed) maturity date:1/1/30 coupon rate .1, redemption:100, frequency:1, basis:1 (d) What is the expected holding period return from 1/1/2019 to 1/1/2020 if we
additional info(if needed) maturity date:1/1/30
(d) What is the expected holding period return from 1/1/2019 to 1/1/2020 if we believe that the YTM happen to be 0.08 and 0.05 on those two days (highlighted in green)? Don't forget the coupon payment in your HPR calculations. Random YTM between 0.05 to 0.15 1/1/00 0.10 1/1/01 0.13 1/1/02 0.07 1/1/03 0.09 1/1/04 0.12 1/1/05 0.14 1/1/06 0.09 1/1/07 0.06 1/1/08 0.06 1/1/09 0.12 1/1/10 0.07 1/1/11 0.12 1/1/12 0.08 1/1/13 0.09 1/1/14 0.10 1/1/15 0.13 1/1/16 0.06 1/1/17 0.07 1/1/18 0.11 1/1/19 0.08 1/1/20 0.05 1/1/21 0.13 1/1/22 0.08 1/1/23 0.05 1/1/24 0.05 1/1/25 0.10 1/1/26 0.12 1/1/27 0.13 1/1/28 0.05 1/1/29 0.08 Price (Random YTM) 100.00 77.59 136.41 110.03 84.21 72.51 109.71 149.21 148.17 84.88 131.78 85.27 118.74 108.54 100.00 80.61 137.18 125.07 93.51 114.28 138.61 84.61 111.49 128.93 125.38 100.00 93.93 92.92 109.30 101.85 coupon rate .1, redemption:100, frequency:1, basis:1
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