Question: Using yields on US Treasury notes (google search), what would be the price of a 1, 3, 7, 10, and 30 year note each yielding

Using yields on US Treasury notes (google search), what would be the price of a 1, 3, 7, 10, and 30 year note each yielding $1,500 (single payment) at maturity? You have $5,000 to either spend or invest in a 5 year Treasury note. Which would you choose? Why? You have a student loan of $15,000 with annual interest of 7.0%/year and have received an unexpected bonus from work of $5,000. Should you put the cash towards paying off your loan or to buy Treasury notes? Why
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
