Question

Assuming 30 year Treasury Bonds are yielding 4
1) 3.5%
2) 4%
3) 4.5%
4) 5%

Answer 1

This question is about bond yields and interest rates in the context of Treasury Bonds.

Step-by-step explanation:

The subject of this question is about bond yields and interest rates in the context of Treasury Bonds.

In the given information, it states that Treasury Bonds typically pay more than bank accounts, and corporate bonds typically pay a higher interest rate than Treasury bonds.

In the specific scenario given in the question, the yield on the bond would be calculated using the formula: (face value + last year's interest payment - initial investment) / initial investment. The result would be the total return, which includes interest payments and capital gains.