A six-year us government bond ie face value is 1000 makes

Reference no: EM13622004

A six-year US government bond (i.e. face value is $1,000) makes annual coupon payments of 5% and offers a yield of 3% annually compounded. Suppose that one year later the bond still yields 3%. What return has the bondholder earned over the 12-month period?

Reference no: EM13622004

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