Question

You purchase an 11 3/8s february $10,000 par treasury note at 103:11 and hold it for exactly one year at which time you sell it. what is your rate of return if your selling price is 100:13?

Answers

  1. Based on the fact that you bought the treasury note at 103.11 and sold it for 100.13, your rate of return is -2.89%

    What is the rate of return?

    The rate of return on the treasury note can be found as:
    = (Selling price – Buying price) / Buying price x 100%
    Solving gives:
    = (100.13 – 103.11) / 103.11 x 100%
    = -2.98/ 103.11 x 100%
    = -2.89%
    Find out more on rates of return at https://brainly.com/question/24301559
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