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(d) John observes the following US Treasury bond rates on 29 April 2020 and asks you to explain the data. US Treasury Bonds Rates Symbol
(d) John observes the following US Treasury bond rates on 29 April 2020 and asks you to explain the data. US Treasury Bonds Rates Symbol Name Last Price AIRX 13 Week Treasury Bill 0.0900 AFVX Treasury Yield 5 Years 0.3620 ATNX Treasury Yield 10 Years 0.6270 ATYX Treasury Yield 30 Years 1.2450 Explain to John the data in the above table, with reference to the maturity and volatility of these bonds. What are the risks, if any, that the investor will face if he buys the 10- year Treasury bond? (10 marks)
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