Suppose that government bonds become much less liquid and, at the same time, corporate bonds become substantially
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Suppose that government bonds become much less liquid and, at the same time, corporate bonds become substantially riskier. Use the supply and demand model of corporate and government bonds developed in class to show the effect of these simultaneous shocks on the risk spread in the economy.
Related Book For
An Introduction to Management Science Quantitative Approach to Decision Making
ISBN: 978-1337406529
15th edition
Authors: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran
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