Question
According to an article in the Economist about interest rates on European government bonds in2016, investors were concernedthat, European equities are almost20% below their levels
According to an article in the Economist about interest rates on European government bonds in2016, investors were concernedthat,
"European equities are almost20% below their levels of a yearago; commodities have plunged inprice; the default rates on corporate bonds are rising"
Source: open double quote
"Why Investors Buy Bonds with Negative Yields, Economist, February9, 2016.
What is the most likely impact on European government bonds as a result of the factors listed in thearticle?
A.
The supply of government bonds decreased.
B.
The demand for government bonds increased.
C.
The interest rates on government bonds increased.
D.
The demand for government bonds decreased.
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