- A 4 Two Years Ago Sam Bought A Newly Issued Three Year Us Government Bond A Risk Free Asset With A Principle Of 1000 1 (75.05 KiB) Viewed 50 times
a 4. Two years ago Sam bought a newly issued three-year US government bond (a risk-free asset) with a principle of $1000
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a 4. Two years ago Sam bought a newly issued three-year US government bond (a risk-free asset) with a principle of $1000
a 4. Two years ago Sam bought a newly issued three-year US government bond (a risk-free asset) with a principle of $1000 and a 5% coupon rate. This year, one year before maturity, Sam decides to sell the bond and sees that the price people are willing to pay for his bond is now $1019. a. Has the interest rate gone up or down since Sam purchased the bond? b. What is the the current interest rate for bonds when Sam decides to sell?