Five years ago you purchased a 10 year U.S. treasury note for $6,500. You receive $125/year in interest. Principal of $6,500 paid in full at the end of 10 years.

- What was the rate of return (yield) when you purchased the note?

- What would be the price of the note today?

- If you sold the note today, what would be your rate of return?

- Under what circumstances would you decide to sell the note? Keep it?