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On 10 Jan 2021, you agreed to purchase an Australian government bond with a coupon rate of 3% pa (paid semi-annually) and maturing on 21
On 10 Jan 2021, you agreed to purchase an Australian government bond with a coupon rate of 3% pa (paid semi-annually) and maturing on 21 September 2022. At settlement, you paid
$1,034.34 per $1,000 of face value.
Today is 3 June 2021, and you are selling your holdings in the bond to a dealer who quotes you a yield to maturity of 1.1%. What is your holding period return in % per annum, assuming you held all coupon payments as cash (i.e., you did not reinvest them)?
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