A decade ago, Monty purchased a 30 year, $1,000 Treasury bond. The interest rate at the time
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A decade ago, Monty purchased a 30 year, $1,000 Treasury bond. The interest rate at the time of purchase was 7%. Today, comparable bonds are paying 5%. Approximately how much could Monty sell his bond for? Explain why the bond has increased in value.
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You would sell the bond for a premium more than face value bec...View the full answer
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Related Book For 
Personal Finance Building Your Future
ISBN: 978-0073530659
1st edition
Authors: Robert B. Walker, Kristy P. Walker
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