treasuriesFor example, I read in an article on Bloomberg that:
Treasuries returned 9.7 percent, a Bank of America Corp. index shows.
How is that rate of 9.7% determined? Yields to maturity? Or something else?
In this particular case, it’s the profit, as a proportion of investment, had one bought Treasuries at the start of January 2011, and sold them in mid-December 2011.
The article uses that as a very-low-risk benchmark for the performance of Robusta & Arabica coffee on the LIFFE commodities exchange.
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