An article in the Wall Street Journal contained the following observation: Falling interest rates tend to boost
Question:
An article in the Wall Street Journal contained the following observation: “Falling interest rates tend to boost bond prices … but weigh on currencies.”
a. Why do falling interest rates increase bond prices?
b. Why would falling interest rates “weigh on currencies”?
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a The falling interest rates increase the present value of bonds raising bond ...View the full answer
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Jinah Patricia Padilla
Had an experience as an external auditor in Ernst & Young Philippines and currently a Corporate Accountant in a consultancy company providing manpower to a 5-star hotel in Makati, Philippines, Makati Diamond Residences
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Related Book For 
Money, Banking, and the Financial System
ISBN: 978-0134524061
3rd edition
Authors: R. Glenn Hubbard, Anthony Patrick O'Brien
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