Re: The Federal Reserve: Love it or Hate it
Just to correct something i said:
Total return=Price change + Coupon + risk free rate
Excess return= Total return-risk free rate.
so the Excess return=price change + coupon. to get the excess return, you need the risk free rate.
More generally, Total Return= XR + cash
where XR is the excess return of whatever you are looking at and cash is colloquial for the risk free rate.
Barron
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