Question
In Excel an Excel spreadsheet with formulas. Five years ago you purchased a 10 year U.S. treasury note for $6,500. You receive $125/year in interest.
In Excel an Excel spreadsheet with formulas.
Five years ago you purchased a 10 year U.S. treasury note for $6,500. You receive $125/year in interest. Principal of $6,500 paid in full at the end of 10 years | ||||||||||||||||||
What was the rate of return (yield) when you purchased the note? | ||||||||||||||||||
What would be the price of the note today? | ||||||||||||||||||
If you sold the note today, what would be your rate of return? | ||||||||||||||||||
Under what circumstances would you decide to sell the note? Keep it? | ||||||||||||||||||
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Formulas Cell Formula Description B1 A11A2A1A3A4 Present Value of Investment Price Today B2 A11A2A1A...Get Instant Access to Expert-Tailored Solutions
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Fundamentals of Corporate Finance
Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim
6th Canadian edition
1259024962, 978-1259024962
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