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?

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The rate of return is calculated by considering the purchase price, selling price, and the coupon payment received. The purchase price is 103.34375% of par ($10,334.375), the selling price is 100.40625% of par ($10,040.625), and the coupon payment is 11.375% of par ($1,137.50). The rate of return is (($10,040.625 + $1,137.50 - $10,334.375) / $10,334.375) * 100 = 8.16%.

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