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Historically, the rate of return on U.S. Treasury bills is usually greater than the rate of inflation. True or False? If the coupon is 6%
Historically, the rate of return on U.S. Treasury bills is usually greater than the rate of inflation. True or False?
If the coupon is 6% and the yield to maturity are 6% on a 10-year to maturity bond (assuming a $1,000 par value), what is the PV of the bond?
If the yield to maturity increases to 8% (on the same bond), will the bond be then selling at a discount or a premium to par?
If the yield to maturity decreases to 4% (on the same bond), will the bond be then selling at a discount or a premium?
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