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  3. d) assume you are able to reinvest the coupon paym

d) Assume you are able to reinvest the coupon payments at 8% ( 4% semi)...

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d) Assume you are able to reinvest the coupon payments at 8% ( 4% semi) annually over the next two years and, at the end of two years, sell the bond for the $980. What is your annual holding period return (or realized compound yield)? Example: CFA5 problem. 2. Consider two 0-coupon bonds ($1,000 par) with the following maturities (today's date is April 2019)? Maturity 1 year (Matures (April 2020) 2 years 3 years a) Draw the yield curve (complete curve assuming 30 year maturity is .034). Yield Yield (annual) .01 .018 .022 Plot points. e .034 01 30 Maturity 1 2 b) i) What is the price of a 1-year, 0-coupon bond today? ii) What is the expected price of a 1-year, 0-coupon bond that will be issued one year from today (April 2020 and mature in April 2021)? iii) Compute the YTM of a 2-year 5% coupon bond

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