Question
The below excerpt is in relation to upcoming quiz. At this stage I am unsure of what to do in order to prepare. Any help
The below excerpt is in relation to upcoming quiz. At this stage I am unsure of what to do in order to prepare. Any help would be great, thank you.
Anita decided to buy 10 - year Treasury-Bills with a coupon rate of 4.00% per annum paid semi-annually with a face value of $1,000 and yield to maturity of 4%. However, by the time she was purchasing the bond, the RBA cash rate has decreased by 50 basis point and this amount was fully passed on to the yield to maturity.Prepare to answer questions based on the relationship between yield to maturity and the bond price. Use your knowledge of bond theorems to prepare for the upcoming quiz.
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