Lesson 3: Bonds: Lending Money for Interest. Face value, coupon, maturity — the anatomy of a loan contract.
Lend for 3 months or 30 years — which pays more?
Gut check before the yield curve.
Assessment
A government will pay you interest to lend it money for either 3 months or 30 years. In normal times, which one pays a higher interest rate?
Three months, or thirty years 🤔