Question
An 8 year government bond with a coupon rate of 2% offers a yield of 10% annually compounded. Suppose that the bond yields is 5%
An 8 year government bond with a coupon rate of 2% offers a yield of 10% annually compounded. Suppose that the bond yields is 5% at the end of the year. What returns did the bond holder earn in this case?
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Handbook Of Financial Econometrics
Authors: Yacine Ait-Sahalia, Lars Peter Hansen
1st Edition
044450897X, 978-0444508973
