Question: There are 4 main risks reflected in bond yields and bondholders require a retun premium to compensate for them. (5 marks) (have to be explain

There are 4 main risks reflected in bond yields and bondholders require a retun premium to compensate for them. (5 marks) (have to be explain it) i. These risks are inflation, liquidity and which two other risks? ii. Which of mese 4 risks is reflected in a yield curve? iii. Which of these 4 risks has been of most concern in bond markets in the past 6 months and what effect has it had on bond prices? Explain briefly.

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