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Assume that all interest rates in the market increase suddenly and unexpectedly by 120 basis points. Approximate how this increase would affect the overall value
Assume that all interest rates in the market increase suddenly and unexpectedly by 120 basis points. Approximate how this increase would affect the overall value (in US$ terms) of outstanding U.S. treasury and corporate bonds! Briefly explain your calculation and the sources you used!
Should we refer from the Fed's activity in 2019 to answer this question?
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