A one-year 10% Treasury bond with $100 par value pays coupons
every quarter. An investor bought this bond at a yield of 4% pa and
is planning to keep the bond until maturity, exactly one year from
today. Coupon payments will be reinvested in the bond. The bond is
free from default risk.
As of the settlement date, is it possible to calculate a minimum
holding period return the investor could achieve? If yes, what is
it (% pa)? If not, explain why.
A one-year 10% Treasury bond with $100 par value pays coupons every quarter. An investor bought this bond at a yield of
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