You Purchase a 10 1/4s February $10,000 Par Treasury Note

Multiple Choice

You purchase a 10 1/4s February $10,000 par Treasury note at 102:15 and hold it for exactly one year at which time you sell it. What is your rate of return if your selling price is 104:14?

A) 11.92 percent
B) 8.16 percent
C) 8.55 percent
D) 8.61 percent
E) 10.25 percent