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- When I expect interest rates to fall in the near future, I will be willing to Buy bonds at current prices. Buy bonds, but only if their price falls. Sell bonds now. Put my money in savings account rather than buy bonds.why does selling bonds by the Treasury to the financial market raise interest ratesWhy do you think mortgage backed securities paid higher interest rates than other investments like time deposits, and US government bonds during the 2007/2008 financial crisis?
- How does collateral help solve the adverse selection and moral hazard problems in debt contracts?Select 2 currency instruments and compare the advantages and disadvantages of them for the investor?Why are bonds somewhat risky to buy, even though they make predetermined payments based on a fixed rate of interest?
