Interest rate respond to this falling inflation expectations

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Suppose you bought a 2-year, 2%-coupon-rate, $100-face-value Treasury note at a market price of $98. The yield to maturity on this note is _________

Ceteris paribus, which of the following will lead to a rise in the current interest rate on Bond A? (NRR) A) Bond A becomes more liquid than other assets. B) The prices of alternative assets become more volatile than the price of Bond A. C) The interest rate on Bond A is expected to fall in the near future. D) None of the above

Suppose Congress enacts an increase in federal income tax rates. Ceteris paribus, what’s its impact on the yield on municipal bonds?

Given the falling oil and other commodity prices we observe lately, inflation is expected to fall. How does the current interest rate respond to this falling inflation expectations?

Reference no: EM131002259

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Interest rate respond to this falling inflation expectations : Suppose you bought a 2-year, 2%-coupon-rate, $100-face-value Treasury note at a market price of $98. The yield to maturity on this note is _________ Given the falling oil and other commodity prices we observe lately, inflation is expected to fall. Ho..

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