Major Points
also issues bonds (“T-bills”) with just a 1-year maturity. If Mr. VWX buys a 1-year bond, he will be assured of earning a 4.95% annual interest rate for one year. Then, at the end of year 1/start of year 2, he could buy a new U.S. government bond with a 1-year maturity to complete the second year of his planned investment period, following ................
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