One year ago you bought a $10,000, 4-year Government of Canada Treasury Bill (discount bond) at the then market yield of 5%. Today the market yield on the bond is 3% and now you find that must sell the bill. (a ) What is the current market price of the bill? (b ) What is your one period holding period return on your investment?
One year ago you bought a $10,000, 4-year Government of Canada Treasury Bill (discount bond) at the then market yield of 5%. Today the market yield on the bond is 3% and now you find that must sell the bill. (a ) What is the current market price of the bill? (b ) What is your one period holding period return on your investment?
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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One year ago you bought a $10,000, 4-year Government of Canada Treasury Bill (discount bond) at the then market yield of 5%. Today the market yield on the bond is 3% and now you find that must sell the bill.
(a ) What is the current market price of the bill?
(b ) What is your one period holding period
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