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Lecture 3: Discuss in words and graphs what will happen to bond prices, interest rates, and the dollar volume of bonds issued, due to factors
Lecture 3:
Discuss in words and graphs what will happen to bond prices, interest rates, and the dollar volume of bonds issued, due to factors such as: rising inflationary expectation, increased indebtedness, changes in taxation policies, etc. Think in terms of both supply and demand.
Explain graphically, how increased government bond issuance can result in a decrease of corporate bond issuance, and lower corporate bond prices.
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