Question
As you can see by clicking on the above link, the going yield-to-maturity on a 10 year US Treasury bond is about 4.33% (as of
As you can see by clicking on the above link, the going yield-to-maturity on a 10 year US Treasury bond is about 4.33% (as of Monday morning).
Does this mean that an investor who buys this bond today will earn a rate of return of 4.33% with certainty? Why or why not?
https://www.bloomberg.com/markets/rates-bonds/government-bonds/us
HINT: As you address this question, keep in mind that any intuition about loans you have from home mortgages can also be usefully applied here.
Step by Step Solution
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No buying a 10year Treasury bond with a current yieldtomaturity YTM of 433 does not guarantee a 433 return with certainty Heres why using the analogy ...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
