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Discuss?how the bond market reacts when the Federal Reserve increases short term interest rates. How do...

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Finance

Discuss?how the bond market reacts when the FederalReserve increases short term interest rates. How do short-termversus long-term bond prices react? How do Treasury bonds versuscorporate bonds behave?

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Ans Short term interest rates are usually controlled by central banks across the globe short term interest rate is a type of rate which affects the short term borrowing between financial institutions or it is the rate at which government paper is bought or sold in the market where long term interest rate is not controlled by    See Answer
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Discuss?how the bond market reacts when the FederalReserve increases short term interest rates. How do short-termversus long-term bond prices react? How do Treasury bonds versuscorporate bonds behave?

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