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ECON 100 QUESTION FOR WEEK 7

You buy a Government bond at a rate of 4%. ;A year later, the rate is 8% and your bond is worth half of what you boght it at, so it has a market rate of 8% to new buyers. ;You lent money to the Government. ;Did you win? ;You are the bank, and your money is now stuck for 30 years under the present interest rate. ;Didi you get a good deal?

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