Refer to the table below to answer one question. Interest Rate Option March 2020 Cash 0.00% Checking accounts 0.01% 6-month CD 1.70% 10-year Treasury bond 0.88% Corporate bond (Aaa) 2.67% What is the implied price of holding money in 10-year Treasury bonds rather than investing in corporate bonds? Instructions: Enter your response as a percentage rounded to two decimal places. | %

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter20: Monetary Policy
Section: Chapter Questions
Problem 3SQP
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Refer to the table below to answer one question.
Interest Rate
Option
March 2020
Cash
0.00%
Checking accounts
0.01%
6-month CD
1.70%
10-year Treasury bond
0.88%
Corporate bond (Aaa)
2.67%
What is the implied price of holding money in 10-year Treasury bonds rather than investing in corporate bonds?
Instructions: Enter your response as a percentage rounded to two decimal places.
Transcribed Image Text:Refer to the table below to answer one question. Interest Rate Option March 2020 Cash 0.00% Checking accounts 0.01% 6-month CD 1.70% 10-year Treasury bond 0.88% Corporate bond (Aaa) 2.67% What is the implied price of holding money in 10-year Treasury bonds rather than investing in corporate bonds? Instructions: Enter your response as a percentage rounded to two decimal places.
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