refer to the points plotted on the previous graph. the line showing the relationship between bond prices and Bond yields has a _____ slope; hence, there is a _____ relationship between bond prices and interest rates. the implied yield on the bond becomes negative when it's price _____ it's maturity value. which of the following events would most likely lead to such a situation in the t-bill market: 1) the united states government is forced to shut down it's offices for several months because congress and the president cannot pass a budget. 2)a massive decrease in investors confidence sharply increases the demand for t-bills. the increased demand causes t-bill prices to rise above their maturity values. 3) the united states Treasury holds a large auction of t-bills, increasing the supply of t-bills in the market.

+ + T-Bill Price/Yield X N YIELD ON 3-MONTH T-BILL (Percent) -1 -2 985 990 995 1000 PRICE OF 3-MONTH T-BILL (Dollars) Type here to search