Assume I invested in a $2,000 treasury bond . You currently own a 30 year Treasury Bond
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Question:
Assume I invested in a $2,000 treasury bond .
You currently own a 30 year Treasury Bond at 4% interest, paid semiannually. The market interest rates for like securities rose to 5%. Would your bond sell for a premium or a discount? Why? What would the market value of your bond be?
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