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Economics Assume that you hold some Treasury bonds at the outset. The Fed then announces that they will increase interest rates more than previously expected
Economics Assume that you hold some Treasury bonds at the outset. The Fed then announces that they will increase interest rates more than previously expected in the coming year. After the announcement, do you want to hold more or less Treasury bonds? Explain briefly WHY. What do you think will happen to the price and yield (answer BOTH) on Treasury bonds after the announcement? Explain briefly WHY
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