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Today is 1 January 2019. Lucy is planning to purchase a 10-year 4.15% p.a. Treasury bond with a face value of $100. The maturity date

Today is 1 January 2019. Lucy is planning to purchase a 10-year 4.15% p.a. Treasury bond with a face value of $100. The maturity date of the treasury bond is 1 January 2029. The bond is redeemable at par.

Assume that Lucy can purchase this bond at the price of $96.85 and she is exempted from the tax payment. Calculate Lucy's holding period yield (express your answer as a j2) for 3 years (from 1/1/2019 to 1/1/2022), 6 years (from 1/1/2019 to 1/1/2025) and 9 years (from 1/1/2019 to 1/1/2028). Given that The reinvestment rate is predicted to be j2 = 4.5% from 1/1/2019 to 1/1/2027 and j2 = 4.7% afterwards. The market yield rate is predicted to be j2 = 4.3%.

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