Question
Wendy buys a 5-year Treasury Bond with a face value of $100 and a coupon of 6% pa (paid semi-annually) at a yield of 6%
Wendy buys a 5-year Treasury Bond with a face value of $100 and a coupon of 6% pa (paid semi-annually) at a yield of 6% pa, when it is initially issued. She sells it after 1 year (coupon just paid) at a yield of 7% pa. What is the selling price?
| A. | $93.44 | |
| B. | $100 | |
| C. | $94.21 | |
| D. | $96.56 |
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Financial Markets And Institutions
Authors: Frederic S. Mishkin, Stanley Eakins
6th Edition
0321374215, 9780321374219
