Relationship between bond prices and interest rates

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Reference no: EM131559179

Yield to Maturity & the Inverse Relationship between Bond Prices & Interest Rates

If the Treasury issues additional identical four-year notes in order to help finance a budget deficit, and their price declines from $20,000 to $19,000, how is the yield to maturity on 4-year T-notes affected?

(calculate the new yield to maturity figure within ± 1 percentage point of its actual value)

Reference no: EM131559179

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