Question
use US real zero-coupon yields from Federal Reserve Board a) What is the price of a 3 year zero-coupon US government real bond with the
use US real zero-coupon yields from Federal Reserve Board
a) What is the price of a 3 year zero-coupon US government real bond with the (real) face value of $1,000 issued on January 24, 2011 on its issuance day?
b) Suppose you buy a real bond from part a) on January 24, 2011 and hold it for exactly 1 year until January 24, 2012 and then sold it. How many dollars did you make or lose from this investment?
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Corporate Financial Management
Authors: Glen Arnold, James Pickford
2nd Edition
0582821762, 978-0582821767
