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The interest rate on 10-year government bonds in Hong Kong is 1.46%. In the United States the rate on 10-year government bonds is 2.13%, and in Russia the rate is 8.13%. You are a Hong Kong resident.
a. Would you buy US government bonds? ____Yes ____No ____Uncertain
(explanation not to exceed about 30 words)
b. Would you buy Russian government bonds? ____Yes ____No ____Uncertain
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What does the IRR rule advise regarding the payment arrangement?
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