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Please Explain this Framework in detail Exhibit 8.6 Framework for Explaining Changes in Bond Prices over Time U.S. U.S. Fiscal Policy Monetary Policy U.S. Economic

image text in transcribedPlease Explain this Framework in detail

Exhibit 8.6 Framework for Explaining Changes in Bond Prices over Time U.S. U.S. Fiscal Policy Monetary Policy U.S. Economic Conditions Issuer's Industry Conditions Issuer's Unique Conditions Long-Term Risk-Free Interest Rate (Treasury Bond Rate) Risk Premium of Issuer Required Return on the Bond Bond Price Source: Federal Reserve

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