Draw a demand and supply diagram of a bond market

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Draw a demand and supply diagram of a bond market and show the equilibrium price and quantity demanded and supplied in the diagram. What are the factors that shift these demand and supply of bonds? What is the relationship between bond market prices and its yields (interest rates in general). Given the same maturity of bonds, give at least two reasons for why the treasury bonds (and notes and bills) yields (interest rates) are always lower than those of corporate bonds.

Reference no: EM13735349

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