Rate of inflation-treasury bond and treasury bill

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Reference no: EM13847175

Why is $100 today worth more to you than $100 in one year’s time even if the rate of inflation is zero?

If interest rates rise, would you rather be holding a 30-year Treasury bond or a 90-day Treasury bill? Please explain.

What is the yield to maturity on a 10-year discount bond with a face value of $100,000 that is initially sold at a price of $82,000?

Reference no: EM13847175

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