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Assume yourself as a risk-neutral individual and explain why you would be more or less willing to buy 5-year Government Bonds under the following circumstances.
Assume yourself as a risk-neutral individual and explain why you would be more or less willing to buy 5-year Government Bonds under the following circumstances.
a. You expect a general decline in the price of the majority of private bonds.
b. Trading in these bonds increases, making them easier to sell.
c. You expect a general decline in the price of the majority of private bonds.
d. Brokerage commissions on private stocks fall.
e. The price of residential flats fall down
HINTS:Answer the question with all the five circumstances mentioned above.
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