Business, 04.03.2021 22:40, veronicacalyn

g You are strongly of the opinion that interest rates are going to fall within the next six months. Consequently you are considering investing in a twelve-year treasury bond that is currently trading at a yield to maturity of 3.25 percent. The bond has a coupon rate of 3.25 percent and pays coupon interest semi-annually. Your belief is that the yield on these bonds will fall by 50 basis points (0.5 percent) within the next six months. What percentage return will you earn if you buy the bond now and sell them in six months, if your belief is realised

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g You are strongly of the opinion that interest rates are going to fall within the next six months....