Suppose that your investment strategy is to buy a 10-year U.S. Treasury bond, hold it for a year, then sell it and buy a new 10-year U.S. Treasury bond. You plan to repeat this process until you retire. Which of the following statements is correct? You can assume that 10-year bonds are always issued at face value (of $1,000) The actual/realized return will be significantly higher than the coupon rate that was promised at issuance if real yields have increased since you initially ** bought the bond. O A. B. The actual/realized return will be significantly lower than the coupon rate that was promised at issuance if real yields have increased since you initially bought the bond. QUESTION 10 Suppose that your investment strategy is to buy a 10-year U.S. Treasury bond, hold it for a year, then sell it and buy a new 10-year U.S. Treasury bond. You plan to repeat this process until you retire. Which of the following statements is correct? You can assume that 10-year bonds are always issued at face value (of $1,000) The actual/realized return will be significantly higher than the coupon rate that was promised at issuance if actual inflation turns out to be higher than O A. U^what was expected when the bond was issued. The actual/realized return will be significantly lower than the coupon rate that was promised at issuance if actual inflation turns out to be higher than what was expected when the bond was issued. OB. Suppose that your investment strategy is to buy a 10-year U.S. Treasury bond, hold it for a year, then sell it and buy a new 10-year U.S. Treasury bond. You plan to repeat this process until you retire. Which of the following statements is correct? You can assume that 10-year bonds are always issued at face value (of $1,000) The actual/realized return will be significantly higher than the coupon rate that was promised at issuance if real yields have increased since you initially ** bought the bond. O A. B. The actual/realized return will be significantly lower than the coupon rate that was promised at issuance if real yields have increased since you initially bought the bond. QUESTION 10 Suppose that your investment strategy is to buy a 10-year U.S. Treasury bond, hold it for a year, then sell it and buy a new 10-year U.S. Treasury bond. You plan to repeat this process until you retire. Which of the following statements is correct? You can assume that 10-year bonds are always issued at face value (of $1,000) The actual/realized return will be significantly higher than the coupon rate that was promised at issuance if actual inflation turns out to be higher than O A. U^what was expected when the bond was issued. The actual/realized return will be significantly lower than the coupon rate that was promised at issuance if actual inflation turns out to be higher than what was expected when the bond was issued. OB
