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Consider two types of bonds in the market: US Treasury bonds and European Government Bonds ( bonds issued by governments of countries in the European
Consider two types of bonds in the market: US Treasury bonds and European
Government Bonds bonds issued by governments of countries in the European
Union. Also consider the Greek governmentdebt crisis happened in Use the
figures of both bond market and market of loanable funds to illustrate the effect of the
crisis on bond prices and interest rates of these two types of bonds.
Hint: recall the story of a flight to quality
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