The interest rate risk associated with Treasury bonds is much ...

[2125004343]

The interest rate risk associated with Treasury bonds is much higher than with bills.
 
  Indicate whether the statement is true or false

Question 2

Jia Hua Enterprises wants to issue sixty 20-year, 1,000 par value, zero-coupon bonds. If each bond is priced to yield 7 percent, how much will Jia Hua receive (ignoring issuance costs) when the bonds are first sold?
 
  A) 11,212
  B) 12,393
  C) 15,505
  D) 18,880

[Melissahxx]

Answer to Question 1

TRUE

Answer to Question 2

C

[2125004343]

TYSM

[Viet Thy]

Excellent