tua84949
Sep 27, 2009, 06:55 PM
You have just purchased a zero-coupon 3 year Treasury note with a face amount of $10,000. The price was $9,150.00.
a. As you walk home, you hear that the Federal Reserve has just purchased a large volume of 3-year Treasury notes, driving down their yield to 2%. The Fed also stated that it would continue to intervene in the market to keep the yield at 2%. What is the difference between the yield of your purchase and the Fed's 2% targeted yield?
b. What is the amount of your capital gain or loss on the purchase and sale of the 3-year notes if you sell your notes tomorrow?
.. Does anyone know how to find out the yield of the note that was bought in the beginning?
a. As you walk home, you hear that the Federal Reserve has just purchased a large volume of 3-year Treasury notes, driving down their yield to 2%. The Fed also stated that it would continue to intervene in the market to keep the yield at 2%. What is the difference between the yield of your purchase and the Fed's 2% targeted yield?
b. What is the amount of your capital gain or loss on the purchase and sale of the 3-year notes if you sell your notes tomorrow?
.. Does anyone know how to find out the yield of the note that was bought in the beginning?