Next graph shows the latest return and interest rates for fixed income % government securities at different maturities in Kenyan economy. Considering the graph, answer each of the following separately: 100 80 60 40 a. Evaluate the situation in which Kenyan 20 0---- economy operates. b. Assuming that these conditions do not change in near future, which one do you prefer to obtain the highest return, Kenyan Treasury bills or government bonds? Why? Tbill 1Y Bond 5Y Bond 10Υ Bond Return Rate --0-- Interest Rate

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Next graph shows the latest return
%
and interest rates for fixed income
government securities at different
maturities in Kenyan economy.
100
80
Considering the graph, answer
each of the following separately:
60
----
40
a. Evaluate the situation in which Kenyan
20
0---
economy operates.
b. Assuming that these conditions do not
change in near future, which one do you
prefer to obtain the highest return, Kenyan
Treasury bills or government bonds? Why?
Tbill
1Y Bond
5Y Bond
10Υ Bond
Return Rate
--0-- Interest Rate
Transcribed Image Text:Next graph shows the latest return % and interest rates for fixed income government securities at different maturities in Kenyan economy. 100 80 Considering the graph, answer each of the following separately: 60 ---- 40 a. Evaluate the situation in which Kenyan 20 0--- economy operates. b. Assuming that these conditions do not change in near future, which one do you prefer to obtain the highest return, Kenyan Treasury bills or government bonds? Why? Tbill 1Y Bond 5Y Bond 10Υ Bond Return Rate --0-- Interest Rate
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