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PLEASE HELP ME ANSWER THIS QUESTION. THANK YOU VERY MUCH!! Text size On Aug. 21, the German government issued two billion euros ($2.2 billion) worth

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PLEASE HELP ME ANSWER THIS QUESTION. THANK YOU VERY MUCH!!

Text size On Aug. 21, the German government issued two billion euros ($2.2 billion) worth of negative yielding 31-year zero- coupon Bunds (bonds) at a price 3.5 points above par (and a yield of minus 0.11% if held to maturity). Photograph by Jasper Juinen/Bloomberg The issue is noteworthy not only for its structure and timing, but for what it might presage about future monetary and fiscal policy. Germany's long-term zero-coupon bond is a flagrant reminder that we are living in unprecedented economic times. In August 2019, the German government issued a zero-coupon bond that matures in 31 years compounded annually. The price quote was 100.035 and its YTM was about -0.11% such that 100.035 = 100 / (1+YTM)^31. This price was the result of the auction (demand - supply condition applies) Which of the following statements are CORRECT? i. This bond does not have reinvestment risk. ii. If you hold this bond until maturity, the return of the bond should be -0.11%. iii. If the price of the bond were to be lower than the par at issuance, its modified duration would have been higher than it actually was in 2019. iv. Investors of the bond are expecting significant increase in interest rate in the distant future. O i and ii i and iii O i and iv Oi, iii and iv

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