Question
Ann purchased a semi-annual treasury bond with exactly six years until maturity, which pays coupon semi-annually. The bond has a par value of $1,000, a
Ann purchased a semi-annual treasury bond with exactly six years until maturity, which pays coupon semi-annually. The bond has a par value of $1,000, a 5% annual coupon rate, and a current yield to maturity (YTM) of 6%. After exactly three years, Ann sold the bond to another investor, with a yield to maturity of 4%. What is her holding period return over the 3-year period?
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Financial Management Core Concepts
Authors: Raymond M Brooks
2nd edition
132671034, 978-0132671033
