Purchase Solution

Treasury Bonds

Not what you're looking for?

Ask Custom Question

The following treasury bond quote appeared in the Financial Times on May 7, 2004:

9.125 May 09 100:03 100:04 ... -2.15

Why would anybody buy the Treasury Bond with a negative yield to maturity?
How is this possible?

Purchase this Solution

Solution Summary

The solution goes into a great amount of detail related to the treasury bonds question being asked. The solution is very easy to follow along and can be easily understood by anyone with a basic understanding of the concepts. The solution answers all the question(s) being asked in a succinct way. Overall, an excellent response.

Solution Preview

The yield to maturity can be negative if the bond is in high demand. The U.S. Treasury Bond is in high demand these days because everyone wants the security of the U.S. ...

Purchase this Solution


Free BrainMass Quizzes
Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.