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If yields decrease by 25 basis points across the US Treasure curve, the prices of treasury bonds will increase. Prices of corporate bonds priced using
If yields decrease by 25 basis points across the US Treasure curve, the prices of treasury bonds will increase. Prices of corporate bonds priced using the Treasuries as a benchmark will normally also increase. What could happen that would make the price of a corporate bond fall? (explain in 1-2 bullet points) weighted avg present value of all future cash flows the interest and the principles |
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