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Of the following five investments, is considered the safest. U.S. agency issues Treasury bills commercial paper Prporate bonds Treasury bonds Suppose that all investors expect
Of the following five investments, is considered the safest. U.S. agency issues Treasury bills commercial paper Prporate bonds Treasury bonds Suppose that all investors expect that interest rates for the 4 years will be as follows: If you have just purchased a 4-year zero-coupon bond, what would be the expected rate of return on your investment in the first year if the implied forward rates stay the same? (Par value of the bond =$1,000) 10% 9% None of the options 7% 5%
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