Question
Today is Jan 2019 and the current Treasury bond rates are as follow: Maturity Yield Dec 2019 4% Dec 2020 3% To calculate the expected
Today is Jan 2019 and the current Treasury bond rates are as follow: Maturity Yield Dec 2019 4% Dec 2020 3% To calculate the expected yield r of the bond from Jan 2020 to Dec 2020 mentioned above, you will need the following:
| | 1(1+0.04)^2 = 1(1+0.03)(1+r) |
| | 1(1+0.03)^2 = 1(1+0.04)(1+r) |
| | (0.04 + 0.03)/2 = r |
| | (0.04/0.03)+1 = r |
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Islamic FinanceA Practical Perspective
Authors: Nafis Alam, Lokesh Gupta, Bala Shanmugam
1st Edition
3319665588, 9783319665580
