Question: I need help with all please.I am not sure if they are correct.Thank you! 2. Factors that affect bond pricing 1. 2. Several factors affect


2. Factors that affect bond pricing 1. 2. Several factors affect the risk-free rate, Rf, and risk premium, RP, which in tum impact an investor's required rate of return, k, and consequently, the pnce of a bond. These factors are inflationary expedations, economic growth, money supply growth, and the budget defici. For each of the following scenarios, determine whether it affecta the risk-frce rate, credit risk premium, or both, and then detemmne whether it results in an increase, decrease, or undeterminabie change in bond prices. Mathematically, the general price movement of bonds can be modeled as which of the following? Ph=f(INF,ECON,MS,DEF) Pb=f(INF,CON,DEF) Pbf(COON,MS,DEF) Mathematically, the general price movement of bonds can be modeled as which of the following? Ps=f(INF,ECON,MS,DEF) Pb=f(INF,ECON,DEF) Ph=f(ECON,MS,DEF) Pk=f(MS) 2. Factors that affect bond pricing 1. 2. Several factors affect the risk-free rate, Rf, and risk premium, RP, which in tum impact an investor's required rate of return, k, and consequently, the pnce of a bond. These factors are inflationary expedations, economic growth, money supply growth, and the budget defici. For each of the following scenarios, determine whether it affecta the risk-frce rate, credit risk premium, or both, and then detemmne whether it results in an increase, decrease, or undeterminabie change in bond prices. Mathematically, the general price movement of bonds can be modeled as which of the following? Ph=f(INF,ECON,MS,DEF) Pb=f(INF,CON,DEF) Pbf(COON,MS,DEF) Mathematically, the general price movement of bonds can be modeled as which of the following? Ps=f(INF,ECON,MS,DEF) Pb=f(INF,ECON,DEF) Ph=f(ECON,MS,DEF) Pk=f(MS)
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