question archive 5) a) What is the price of a 3 year zero-coupon US government real bond with the (real) face value of $1,000 issued on January 24, 2011 on its issuance day? b) Suppose you buy a real bond from part a) on January 24, 2011 and hold it for exactly 1 year until January 24, 2012 and then sold it
Subject:FinancePrice: Bought3
5)
a) What is the price of a 3 year zero-coupon US government real bond with the (real) face value of $1,000 issued on January 24, 2011 on its issuance day?
b) Suppose you buy a real bond from part a) on January 24, 2011 and hold it for exactly 1 year until January 24, 2012 and then sold it. How many dollars did you make or lose from this investment?