Question: Suppose bond yields in the U . S . increase, and you are comparing the resulting changes in the U . S . and Canadian
Suppose bond yields in the US increase, and you are comparing the resulting changes in the US and Canadian bond markets.
If bond yields in the US increase, there will be an increase in the flow of investment funds toCanada or The US Consequently, there will be a decrease in the supply of loanable funds in theCanada or The US loanable fund market. As a result, interest rates willdecrease or increase? for these securities
Because interest rates and bond prices areDirectly or inversely? related, bond prices willDecrease or Increase? implyingHigher or lower? bond yields than before in both countries.
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