What will be your realized return

Reference no: EM132179866

Question - A 1-year zero coupon Treasury bond sells for $988.14 and a 2-year zero coupon Treasury bond sells for $970.66. If you buy a 2-year 5% annual coupon bond today, and one year from now immediately following a coupon the one-year risk-free rate of interest is 1.4%, what will be your realized return?

Reference no: EM132179866

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