The direction of the shifts in equilibriums and risk premium

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In 2010, and 2011, the government of Greece risked defaulting on its debt due to a severe budget crisis. Using bond market graphs as shown in class show the effect on the risk premium between U.S. Treasury debt and comparable maturity Greek debt. Please draw the graph and clearly specify each axis, demand and supply schedules, the direction of the shifts in equilibriums and the risk premium.

Reference no: EM13837290

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