Question
Question 10 options Suppose the Treasury auctions a 30-year $10,000 bond. Assume that time has passed, all interest payments have been made, and the bond
Question 10 options
Suppose the Treasury auctions a 30-year $10,000 bond. Assume that time has passed, all interest payments have been made, and the bond matures in ten days, when it will return $10,000 to the current bondholder. If the current price is $9,950, then the bond's current yield, to the nearest tenth of a percent, is ______%. For the purpose of this question, assume that a year is exactly 365 days long.
Question 11 (1 point)
If a consumer invests $7,000 for five years at an annual yield of 6%, then how much does she have at the end of this period (to the nearest dollar)??
Question 12 (1 point)
Question 12 options:
On March 30, the (annual) yield on 28-day Treasury bills (from the table posted with the lecture slides) implied that someone who spent $100,000 buying those bills in a Treasury auction would receive (to the nearest penny): $________
from the Treasury in four weeks. (For the purpose of this question, you can assume that a year is exactly 52 weeks long.)
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