Question: someone buys a 5 year government treasury bond at pt...
Question details
Someone buys a 5 year government treasury bond at $Pt
a.
Can the price be above face value? Why?
b. Can the price be below face value? Why?
c.
If he/she wants to sell it after 2 years, will he/she makes a positive rate of return or
negative rate of return? Explain.
Solution by an expert tutor
