Question

You bought the 10-year US Treasury on 1/2/2020. Is the price higher now? Select one: True...

You bought the 10-year US Treasury on 1/2/2020. Is the price higher now?

Select one:

True

False

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Yes, the price of 10 year United State treasuries which was purchased on 1/2/2020 is hugher as of today.

This is because due to the effect of the coronavirus and the united state treasury bond yields has had fallen dramatically

We know that the relationship of bond yields and price are inverse in nature, so when the bond yields has fallen during the relevant phase, the price of these bonds had reisen significantly in the same phase, so the question is asking about the price of the bond hence the price of the bond has significantly risen in the comparative period.

This is a TRUE statement.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1. Gibbs Free Energy allow us to assess the heat of the process. Select one: True...
1. Gibbs Free Energy allow us to assess the heat of the process. Select one: True False 2. Two atoms that have the same mass number will always have the same atomic number Select one: True False
​Historically, Treasury bills offered higher rates. On January​ 2, 2007, the discount rates were substantially higher...
​Historically, Treasury bills offered higher rates. On January​ 2, 2007, the discount rates were substantially higher than in July 2016. For the following Treasury bill bought in​ 2007, find​ (a) the price of the Treasury bill​ (T-bill), (b) the actual interest rate paid by the Treasury. Assume 365 days in a year. One​-month ​$20,750 ​T-bill with simple annual discount rate of 5.67​%
One year treasury securities yield 2% the market anticipates that one year from now when year...
One year treasury securities yield 2% the market anticipates that one year from now when year treasury securities will yield 5.85% if the pure expect Tatian's theory is correct what is the deal today for two year treasury securities Kathy do you like the yield using a geometric Average
"One-year Treasury bills currently earn 2.90 percent. You expect that one year from now, one-year Treasury...
"One-year Treasury bills currently earn 2.90 percent. You expect that one year from now, one-year Treasury bill rates will increase to 3.35 percent. The liquidity premium on two-year securities is 0.085 percent. If the liquidity theory is correct, what should the current rate be on two-year Treasury securities (Round the percentage answer to 2 decimal places)?" 3.12% 3.13% Not possible to compute with the data provided 2.11% 3.17%
Today (10/13/20), the prices on zero-coupon US Treasury STRIPS are as follows: Maturity                           &nbs
Today (10/13/20), the prices on zero-coupon US Treasury STRIPS are as follows: Maturity                                             Price                                                     Effective Annual In years                           (per $1000 in face value)                                         YTM       1                                                985.000                                                      ______________       2                                               952.000                                                      ______________       3                                                 917.500                                                      ______________       4                                                 871.442                                                              .0350000       5                                                 821.927                                                              .0400000 Questions: a. What are the yields to maturity for each of these zeros? Fill in the banks above. (3 points, 1 point each) b. You think that...
4. The following table shows the price of $1000 face value 1-year, 2-year, 3-year, 9-year and...
4. The following table shows the price of $1000 face value 1-year, 2-year, 3-year, 9-year and 10-year US Treasury zero coupon bonds as of March 2018. Use pure expectations hypothesis to determine: a. the interest rate for the 1-year bond. b. the expected interest rate on a 1-year bond one year from now, in year 2? b. the expected interest rate on a 1-year bond two years from now, in year 3? c. the expected interest rate on a 1-year...
A. You buy a 10-year US Treasury Bond with a coupon interest rate of 5% and...
A. You buy a 10-year US Treasury Bond with a coupon interest rate of 5% and Face Value of $1,000. You decide to sell your bond four years later when market interest rates have fallen to 4%. Find the selling price of the bond. B. Calculate the Annualized Holding Period Return on the investment. Show your work.
A. You buy a 10-year US Treasury Bond with a coupon interest rate of 5% and...
A. You buy a 10-year US Treasury Bond with a coupon interest rate of 5% and Face Value of $1,000. You decide to sell your bond four years later when market interest rates have fallen to 4%. Find the selling price of the bond. B. Calculate the Annualized Holding Period Return on the investment. Show your work.
The thirty-year US Treasury bond has a 2.5% coupon and yields 3.3%. What is its price?...
The thirty-year US Treasury bond has a 2.5% coupon and yields 3.3%. What is its price? A thirty-year corporate bond with a 4% coupon is priced at par. Is it possible for the corporate bond to have a higher price than the Treasury? How is the corporate bond’s “spread” quoted? Both bonds are 100 face and semi-annual
In April 2019, the nominal interest rate on the one-year Treasury bill was 2.34%. From April...
In April 2019, the nominal interest rate on the one-year Treasury bill was 2.34%. From April 2019 to April 2020, the consumer price index rose from 254.9 to 255.9. If you bought the one-year Treasury bill in April 2019, the interest rate you earned over the following 12-month period was X%. (Enter your answer rounded to two decimal places and include a minus sign if necessary.)
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT