Question 4 We would now like to know the present value of our 10-year treasury from question one. Use your result from question 1 for FV, this time we'll assume a typical compounding period for bonds of every 6 months (remember we are discounting). Use the present value form of our equation presented below: FV PV = (1 + 4)(n)(1) t) Question 5 Why is the rate of return on US bonds typically called the risk- free rate of return? Question 4 We would now like to know the present value of our 10-year treasury from question one. Use your result from question 1 for FV, this time we'll assume a typical compounding period for bonds of every 6 months (remember we are discounting). Use the present value form of our equation presented below: FV PV = (1 + 4)(n)(1) t) Question 5 Why is the rate of return on US bonds typically called the risk- free rate of return