Question 1 Question 2: You analyze the bond market. One day you observe that bond prices go down while bond market yield

[answerhappygod]

Question 1

Question 1 Question 2 You Analyze The Bond Market One Day You Observe That Bond Prices Go Down While Bond Market Yield 1 (42.69 KiB) Viewed 15 times

Question 2:
You analyze the bond market. One day you observe that bondprices go down while bond market yield increases. The reason couldbe that:
Fees on stock trading fell.
Bond prices went down, so the public wanted to buy morebonds.
People started getting nervous that stock market prices willfall.
Question 3:

Question 1 Question 2 You Analyze The Bond Market One Day You Observe That Bond Prices Go Down While Bond Market Yield 2 (516.28 KiB) Viewed 15 times

Assume that world economic news indicate that inflation will belower over the next year than previously expected. In this case,bond demand and/or supply will react as in graph:
Question options:
(a) - Bond demand will increase, with no effect on the supplycurve
(b) - Bond demand will decrease, with no effect on the supplycurve
(c) - Bond demand will decrease while bond supply increases
(d) - Bond demand will increase while bond supply decreases
If bond demand increases, Bond price and yield will increase. O Bond price and yield will fall. Bond price will increase, while yield will fall. Bond price will fall, while yield will increase.
(a) (c) P P2 P1 P1 P2 D1 F/ D1 D2 D2 Q1 Q2 Q1 Q2 S Q S1 S2 Q P P1 P2 P P2 P1 D1 D2 Q2 Q1 $2 DI Q2 Q1 Q S1 D2 Q (b) (d)