1) Suppose at market opening on 10/24/2019, the market expects the bond that matures in 2034 ("the longer-term bond") to provide
a 4.5% annual return and the bond that matures in 2024 ("the shorter-term bond") a 4% return. What would be the market prices for both bond on the day?
1 answer:
Answer:
Check the explanation
Explanation:
What would be the market prices <em><u>(which is the current or present price at which services or goods can be purchased/procured or sold. In the financial markets, the market price can adjust so rapidly which is mostly how people change their bid or the way they offer prices, or as buyers hit the offer or as sellers hit the bid.) </u></em>for both bond on the day can be seen in the attached images below:
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