Chapter 4 Questions - Leeds School of Business

Current yields on 1 year T-bills are 25bps. The current yield to maturity on 10 year T-bonds is 2%. Assume both instruments are trading at par today. If we buy the T-Bond and expect to hold it for 1 year. If the return on the bond over the holding period is the same as the T-Bill rate at what price will one sell the bond? ................
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