Go to Bloomberg Market Rates & Bonds(Links to an external site.) (https://www.bloomberg.com/markets/rates-bonds) and review the “Americas 10 Year Government Bond Yields” section. What is the 10 year...

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Go to
Bloomberg Market Rates & Bonds(Links to an external site.)
(https://www.bloomberg.com/markets/rates-bonds) and review the “Americas 10 Year Government Bond Yields” section. What is the 10 year rate on a 10 Year US Bond? Then select a bond that is not an Americas bond. What is the yield on that bond? Should you pay more or less for that foreign bond in US Dollars? Describe in 200 – 300 words why you chose that bond and your calculations supporting your answer. Be sure to respond to at least two of your classmates’ postings.
Answered Same DayNov 07, 2021

Answer To: Go to Bloomberg Market Rates & Bonds(Links to an external site.)...

Shakeel answered on Nov 08 2021
147 Votes
The yield on 10-yers US Treasury Bond is 1.94%
The current market price is $98.25
The yield on 10-years UK Treasury Bond is 0.79%
The current market price is £100.80
Now, the current exchange rate between US dollar and Pound is £0.78 per USD
Therefore, to purchase 10-years UK Treasury Bond, we must have to pay now is 100.80 / 0.78 i.e. $129.23
Therefore, we would have to pay in USD to purchase 10 years UK Treasury Bond.
According to Malkiel G (1962), the bond’s price and...
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