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?