I have predicted that it will trade at $1.05 but I was wrong. Currently, it is trading at $1.01 with a yield of 3.56%.
I wonder what went wrong... Could it be that the current price of other bonds include upcoming interest? I have tried to work on the model but it does not really work. I am puzzled myself.
This is a learning experience for me and I will be re-working on my analysis on bonds. Maybe it is too early to tell or maybe it is because of the optimism of the macroeconomics recently.
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