Question: You bought a five-, ten- and a 15-year US. Treasury bond on Jan 1. The initial price of each bond was $1000 per bond and

 You bought a five-, ten- and a 15-year US. Treasury bond

You bought a five-, ten- and a 15-year US. Treasury bond on Jan 1. The initial price of each bond was $1000 per bond and each had a face value of $1000. At issuance the coupon rate on each bond 3%. By Dec 31 the yield-to-maturity on all three bonds was 4%. If you sell your bonds on Dec 31 , then. bond has the lowest (most negative) retum. NoNone The 15-year bond has the second lowest return. The ten-year bond has the third lowest return. The five-year bond has a risk-free retum that was already known at issuance

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