you have extra money lying around and you want to do something with it but don’t want to take on any risk. You find that you have a choice between a no risk mutual fund that is a mix of CDs and corporate bonds which yields 5% annually and a 3 year US treasury bond. The bond has a face value of $2,000. What is the highest price you would pay for the treasury bond?
yieldTimeFace valueValue 5%32000$1,727.68