Business, 22.02.2020 05:17, Hamilton1757

Suppose you currently own a one-year zero bond issued by the US government. The current price of the bond is $951.45. Your next best alternative is 3%. Given this information do you buy more of this bond or do you sell the bond you already own? Explain in words and mathematics.

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Suppose you currently own a one-year zero bond issued by the US government. The current price of the...