You Purchase an 11 3/8s February $10,000 Par Treasury Note

Multiple Choice

You purchase an 11 3/8s February $10,000 par Treasury note at 103:11 and hold it for exactly one year at which time you sell it. What is your rate of return if your selling price is 100:13?

A) 10.14 percent
B) 11.75 percent
C) 8.22 percent
D) 8.32 percent
E) 8.16 percent