On the 18th July 2020, I purchased a 2.45%, 21st August 2030 CGB at ayield of 1.346%. then on the 16th of September 2021 on sold it when theyield was 1.228%. Assuming the reinvestment rate was 1.25% pa simpleinterest, what was the holding period yield for this investment?Express your answer as a percentage to 3 decimal places. eg not 0.0625but 6.253W

Assume: The par value of CGB=$1000Working Note #1Calculation of coupon payment:First year complete…

Answered: On the 18th July 2020, I purchased a…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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