Analyze each of the following statements and determine whether it is True, False, or Uncertain. Marking will
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Analyze each of the following statements and determine whether it is True, False, or Uncertain. Marking will be based entirely on the supporting arguments. Therefore, try to be thorough in your answers and base your discussion on the theories that have been reviewed in this course.
d) If a bond is sold in Brazil but is denominated in British Pound, then that financial instrument is called a Eurobond.
e) When the bond interest rate is below equilibrium in a bond supply and demand graph, we should have excess supply of bonds.
f) A business cycle expansion will increase the demand for bonds and decrease the supply of bonds and decrease the interest rates.
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