In the market for Amazon.com bonds, explain how each of the following events, ceteris paribus, would affect (1) the demand curve for the bonds, (2) the price and (3) the yield? a. Fitch upgrades the bond from AA to AAA.
b. The interest rate on U.S. government bonds decreases.
c. People expect the interest rate on U.S. government bonds to decrease, but it hasn’t yet happened.