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Consider these three bonds: 1) USTN 10% due 3/31/2025 with a yield to maturity of 3.5% 2) USTN 3% due 3/31/2025 with a yield to
Consider these three bonds: 1) USTN 10% due 3/31/2025 with a yield to maturity of 3.5% 2) USTN 3% due 3/31/2025 with a yield to maturity of 3.6% 3) USTN 10% due 12/31/18 with a yield to maturity of 3.1% Which bond has the highest risk and which bond has the lowest risk. Tell me in your own words, what bond risk means to you. If you were investing in bonds and you believe interest rates will rise across the entire yield curve, which of these three bonds would you buy and why.
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