Question
Jane buys a 3 year Commonwealth bond with a face value of $100 000 and a coupon of 6% pa (paid semi-annually) at a yield
Jane buys a 3 year Commonwealth bond with a face value of $100 000 and a coupon of 6% pa (paid semi-annually) at a yield of 6% pa, when it is initially issued. She sells it after 2 years (coupon just paid) at a yield of 7% pa. What has her return been? (Please show working)
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Practical financial management
Authors: William r. Lasher
5th Edition
0324422636, 978-0324422634
