What is finance? (theory) To fund the massive stimulus package that combats COVID19, the government borrows money through ten-year government bonds that yields 2.5% per annum. The government is also borrowing money in the short term with 1 month treasury notes that yield 1% per annum. You are considering lending to Woolworths both long-term and short-term. Woolworths is raising long-term debt capital to fund a new branch. Given the information provided, an acceptable return to lend to Woolworths for the new branch would be Woolworths is also raising debt capital to purchase inventory. Given the information provided, an acceptable return to lend to Woolworths for the inventory would be because the represents the for short-term risky assets in the economy. (Each blank filled correctly is worth 1.25 marks)