Question
Suppose you observe the following quotes from two different dealers for a corporate bond issued by Campbell's Soup. Also suppose that you buy the bond
Suppose you observe the following quotes from two different dealers for a corporate bond issued by Campbell's Soup. Also suppose that you buy the bond on 11/4/2021 and sell it 91 days later, which is exactly one-quarter of a year. If the two dealer quotes remain exactly the same, what is the best percentage return that you could earn for owning the bond, including accrued interest? (If your answer is 5.25%, enter 5.25.)
Date | Issuer | Maturity | Coupon | Bid Price | Asked Price |
11/4/2021 | Campbell's Soup | Dec 01, 2025 | 6.00 | $99.0 | $100.0 |
11/4/2021 | Campbell's Soup | Dec 01, 2025 | 6.00 | $100.0 | $101.0 |
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