Question
You decide to buy a 30-year US Treasury bond in your retirement account. Your broker says he has one for sale that pays a 6%
You decide to buy a 30-year US Treasury bond in your retirement account. Your broker says he has one for sale that pays a 6% coupon semi-annually. The going rate for a typical 30-year Treasury is 7.75%.
What is the most you should pay for the bond?
a. $124.09
b. 124.22
c. $79.73
d. $79.82
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The Handbook Of Pairs Trading
Authors: Douglas S. Ehrman
1st Edition
0471727075, 9780471727071
