文档介绍：is bond market especially important to economic activity?
Because they enable corporations or governments to borrow to finance their activities and because the bond market is where interest rates are determined.
are function of secondary market?
Secondary markets serve (起...作用) two important functions. First, they make it easier to sell these financial instruments to raise (筹集) cash. Second, they determine the price of security that the issuing firm sells in the primary market.
is the relation between the bond price and its yield to maturity?
The price of a coupon bond and the yield to maturity are negatively related; that is, as the yield to maturity rises, the price of the bond falls. If the yield to maturity falls, the price of the bond rises.
does the return on the bond equal its yield to maturity ?
Only if the time to maturity of a bond is the same as the holding period, then the return on the bond equals its yield to maturity.
might a sudden increase in the people”s expectations of future read estate prices affect interest rate?
The interest rates will rise.
A sudden increase in the people’s expectations of future real estate prices means that the expected return of bond market relative to real estate market decreases, the demand for bonds will fall and shifts the demand curve for bonds to the left, so the interest rate