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FRONT PAGE Treasury Prices Rise on Recession Fear Increasing fears of a recession next year brought bond yields down dramatically in August. The yield
FRONT PAGE Treasury Prices Rise on Recession Fear Increasing fears of a recession next year brought bond yields down dramatically in August. The yield on the Treasury's 1.75 percent 10-year bond fell from 2.0 percent at the beginning of August to 1.5 percent at month's end. In the process, the price of the 10-year bond rose from $875 to $1,167. Market analysts say that impending tariff hikes, the president's impeachment in the House, and lackluster manufacturing data have intensified fears of a recession. Source: Market reports of September 2019. What would the yield be on a 1.75 percent, $1,000, 10-year Treasury bond if the market price of the bonds were Instructions: Round your responses to two decimal places. a. $1,050? b. $875? % c. $1,225? %
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