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Exactly two years ago, the U.S. Treasury issued 10-year Treasury notes at par value with a coupon rate of 2.50%. The Face Value of one
Exactly two years ago, the U.S. Treasury issued 10-year Treasury notes at par value with a coupon rate of 2.50%. The Face Value of one of these notes was $10,000. Today, you want to purchase that $10.000 (face value) Treasury note. A bond dealer will sell it to you for $9,850.00. If you buy the bond and hold it to maturity, what is the yield (YTM) you will have earned?
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Ignoring the fact that this specific scenario may not be very realistic given that yields have risen significantly in the past two years we can still ...
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ISE Essentials Of Investments
Authors: Zvi Bodie, Alex Kane, Alan Marcus
12th International Edition
1265450099, 9781265450090
