You bought a ten-year zero-coupon bond at a 4% YTM. You intend to sell it in one year. How much must the market yield g

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

You bought a ten-year zero-coupon bond at a 4% YTM. You intend to sell it in one year. How much must the market yield g

Post by answerhappygod »

You bought a ten-year zero-coupon bond at a 4% YTM. Youintend to sell it in one year. How much must the market yieldgo up or down so that you break even? Indicate BOTH the newyield AND whether it goes up or down. Assume semi annualcompounding.
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Post Reply