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Suppose investors believe the US will temporarily

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Subject: Economics
Due on: 08/24/2017
Posted On: 08/24/2017 07:13 AM

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Fear of Default and Bond Yields

Suppose investors believe the US will temporarily default on its debt payments in three months due to failing to agree to lifting the debt ceiling. What effect has this on the price and yield of US treasury bills and .com/economics/bonds">bonds with a maturity of 1 month, 3 month and 3 years and how does it affect the shape of the US yield curve.

Tags temporarily believe investors suppose yield debt month default bonds bills treasury maturity price curve affect does years effect shape lifting investors believe suppose yields bond temporarily payments fear agree failing months ceiling

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Suppose investors believe the US will temporarily

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