What will happen to the yields on junk bonds

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Reference no: EM131305373

1. What is a junk bond? Predict what will happen to the yields on junk bonds as the level of economic activity rises and falls during the business cycle. Illustrate your answer with a demand and supply graph for bonds.

2. What is the term structure of interest rates? What is the Treasury yield curve?

3. What are three key facts about the term structure?

4. Briefly describe the three theories of the term structure.

Reference no: EM131305373

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