Could somebody hep me figure out how the total return of 3% on page 242, CFA Study Text, Volume 5, Exhibit 6, Panels a, b and c came about. Thanks in advance.
The returns are stated on an annual basis, calculated as the difference of the total proceeds - the original price divided by the orig. price. The whole figure multipled by 2. = (101.5027-100/100) =(1.5027/100)2 =.015*2 = 3% We have multipled by 2 as we have six month rates.
Thanks so very much, study09.