(Answered) 1 according to ibbotson associates 20

Management Studies

1. "According to Ibbotson Associates, 20 - year government bonds are on track to post annual returns of 30% by the end of 1995. That would lag only the 40% returns of 1982 and 31% returns of 1985"

In 1995 the interest rate was far below 30%. How could 1995 returns on bonds be as high as 30%?

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