the government $10,000). Now assume that today the Treasury is issuing new bonds at 10%. Will anyone buy your bond from you for $10,000 ? Absolutely not ! They can buy a new bond from the Treasury that will pay $ 1000 per interest. They would lose $500 a year in interest income. If you sell your bond, you will have to sell it for less than the $10,000 that you originally paid for it. prices move in the opposite direction of interest rates. Their prices Note: fall when new bonds are paying a higher rate of interest, and vice versa. 14... Balance of Payments. A trade deficit is where a country imports more than it exports. The U.S. Balance of Payments is made up two
the government $10,000). Now assume that today the Treasury is issuing new bonds at 10%. Will anyone buy your bond from you for $10,000 ? Absolutely not ! They can buy a new bond from the Treasury that will pay $ 1000 per interest. They would lose $500 a year in interest income. If you sell your bond, you will have to sell it for less than the $10,000 that you originally paid for it. Note: prices move in the opposite direction of interest rates. Their prices fall when new bonds are paying a higher rate of interest, and vice versa. 14... Balance of Payments. A trade deficit is where a country imports more than it exports. The U.S. Balance of Payments is made up two
2018-2019_frsg_apmacrofreeresponsestudyguide.docx.docx