Discuss what will happen to the discount factors used

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Discuss what will happen to the discount factors used to determine prices of previously issued bonds sold in secondary markets, given the following scenarios (see Appendix 13A):

a. A company's earnings report comes in much lower than expected.

b. Your college is suffering from declining enrollments, particularly among students who want to live on campus. Revenue bonds have been issued to finance your college dorm.

c. Fed policy turns expansionary.

d. The per for mance of the economy is particularly strong.

Reference no: EM131209952

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