What are the three factors that affect supply in the Bond Market, and how do they correlate to the downward or upward shift of the supply curve?
200 words, APA citation© BrainMass Inc. brainmass.com October 25, 2018, 9:22 am ad1c9bdddf
Three factors that impact the bond supply curve include:
1. Change in business conditions. Firms issue bonds to finance large capital projects. This makes sense only if the project is expected to be profitable. As economic conditions become favorable, expected profitability ...
The solution explains the three reasons why the bond supply curve shifts in under 200 words. Good and to the point explanation has been provided to the student which makes the solution really easy to follow along.
Yield Curve and Interest Rates
Explain the yield curve and how it reacts to changes in interest rates, and can you explain why long-term (30-year) bonds generally trade at a higher yield than short-term maturities. Apply the forces of inflation, monetary and fiscal policy, trade deficit and foreign influences in your explanationView Full Posting Details