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10. News comes out today that inflation is greater than expected. Hence, this changes the expectation of future interest rates. What will happen to U.S.

10. News comes out today that inflation is greater than expected. Hence, this changes the expectation of future interest rates. What will happen to U.S. Treasury Bond Prices and Yields today as a result of the news? You will need to use the Mishkin and Eakins (in lecture 6) analysis in your answer and correctly label the graph.

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