Problemsuppose that at time 0 you buy a 6-coupon 30-year, Ask an Expert

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Problem:

Suppose that at time 0 you buy a 6%-coupon 30-year bond priced at par, and at time 0.5 you sell this bond at a yield of 8%.

Required:

Question 1: What is your time 0.5 payoff per $1 of initial investment?

Question 2: What is the rate of return on your investment (annualized, with semi-annual compounding)?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91147358

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