One-year rate of return earned from purchase-treasury notes


Hana purchased for $100,000 two-year Treasury notes with a total principal amount of $110,000 and all with coupon rates of 5% paid annually. With one year before the notes mature (and after receiving the coupon payments for the first year), Hana sells the notes in the open market when Treasury notes with one year left to maturity are yielding 11.0577%. Hana's rounded one-year rate of return earned from her purchase of the Treasury notes is equal to _____%

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Microeconomics: One-year rate of return earned from purchase-treasury notes
Reference No:- TGS065158

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