Bond market and market of loanable funds

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Consider two types of bonds in the market: US Treasury bonds and European Government Bonds (bonds issued by governments of countries in the European Union.). Also consider the Greek government-debt crisis happened in 2009. Use the figures of both bond market and market of loanable funds to illustrate the effect of the crisis on bond prices and interest rates of these two types of bonds.

(Hint: recall the story of “a flight to quality”)

Reference no: EM131977587

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