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Please answer ASAP, will thumbs up and show work please (DO NOT USE EXCEL) (a). You purchased a newly issued 5-year Treasury Note (par=$100,000) from
Please answer ASAP, will thumbs up and show work please (DO NOT USE EXCEL)
(a). You purchased a newly issued 5-year Treasury Note (par=$100,000) from the Federal Government a year ago. When you bought the bond, its YTM was 8 %. The coupon rate on this bond is 8 % paid annually. The current YTM of the bond is 9 %. What is your total percentage return on this bond if you decide to sell your bond today? If the inflation rate was 4 % over the past 10 years, what would be your total real return on this investment?
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