Question: Part II: Short-answer questions (10 points for each question & 40 points in total). 1. Elaborate on the factors that affect bond price changes. 1)

 Part II: Short-answer questions (10 points for each question & 40

Part II: Short-answer questions (10 points for each question & 40 points in total). 1. Elaborate on the factors that affect bond price changes. 1) Factors That Affect the Risk-Free Rate (5 points) 2) Factors That Affect the Credit (Default) Risk Premium (5 points)

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