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An investor may want to invest in bonds with negative yields issued by the German or Japanese governments because (choose correct answers from i 111):
An investor may want to invest in bonds with negative yields issued by the German or Japanese governments because (choose correct answers from i 111): i. Prices of bonds with negative yields are so high that the investor is certain to get back more than she pays in the future. The investor thinks the price of the bond is going to go up in the future so she wants to buy it now so that she can sell it later, making herself a little profit. The German and Japanese governments are considered reliable borrowers and the bunds issued by them are safer than equity or corporate bonds. Therefore the investor who wants more safety and liquidity buy such bunds. 11. 111. a. All of the above. b. i and ii only. C. i and iii only. d. i and iii only. None of the above. e
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