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[Related to the Chapter Opener on page 139] The chapter opener noted that in mid-2016, you could earn an interest rate of 0.25% by buying
[Related to the Chapter Opener on page 139] The chapter opener noted that in mid-2016, you could earn an interest rate of 0.25% by buying a 3-month Treasury bill or an interest rate of 26% by buying 30-year Treasury bond. Briefly explain how the Treasury is able to find buyers for 3-month Treasury bills when investors could earn an interest rate 10 times as high by buying 30-year Treasury bonds. 2.5
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