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Thinking about the macro implications

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Thinking about the Macro Implications

Over the past two months, iron ore prices have fallen 20% and your company's economist is telling you that they expect this to fall another 30% over the next three months. On the back of this information, the economist is forecasting the Reserve Bank of Australia (RBA) will make two interest rate cuts.

Does this information change your choice of bonds? Why/Why not? What factors did you consider when making this decision?

Reference no: EM132703101

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