The graph below is the yield chart of 5 year German Government Bond in Euros. As it is seen from the chart; 5 year German government bond was trading at yield of 0.40% 1 month ago. The current yield to maturity is 0.75%.

If you purchase this bond now and hold it to maturity, would you make a profit or loss? How much profit or loss would you make in terms of annulized yield?

Can you make profit if you trade with this bond during 1 month? Explain briefly.

-0.406 --0.500 L -0.600 -0.700 -0.753 -0.800 --0.900 -0.406 --0.500 L -0.600 -0.700 -0.753 -0.800 --0.900