Question
Suppose you purchase a 15-year bond with a face value of $1000 and 5% annual coupons. You hold the bond for four years, and sell
Suppose you purchase a 15-year bond with a face value of $1000 and 5% annual coupons. You hold the bond for four years, and sell it immediately after receiving the fifth coupon. If the bonds yield to maturity was 3.75% when you purchased and sold the bond, what is the rate of return on your investment?
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Securitisation Derivatives A Practioner's Handbook
Authors: Mark Aarons, Vlad Ender, Andrew Wilkinson
1st Edition
1119532272, 978-1119532279
