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When S exceeds I,an open economy has a trade:
Zero-Coupon Bonds
Bonds that do not pay periodic interest payments and are issued at a deep discount, maturing at face value.
STRIPS
Separate Trading of Registered Interest and Principal Securities, a type of U.S. government security that allows the separate trading of interest and principal components.
Treasury Notes
Intermediate-term U.S. government debt security with a maturity of 1 to 10 years and pays interest every six months.
Maturity at Issue
The predetermined date when a financial instrument, such as a bond, will come due and the principal is to be paid back to investors.
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