Homework SourseA Treasury bond that you own at the beginning of the year is
A Treasury bond that you own at the beginning of the year is worth $1,015. During the year, it pays $31 in interest payments and ends the year valued at $1,025.
| A Treasury bond that you own at the beginning of the year is worth $1,015. During the year, it pays $31 in interest payments and ends the year valued at $1,025. |
Solution
Dollar return = Ending value + Interest earned - Beginning value
=1025+31-1015
=$41
Percentage Return= Dollar return / Beginning value
=(41/1015)*100
=4.04%
