文档介绍：金融机构与金融管理I
is bond market especially important to economic activity?
Because they enable corporations ol happen to interest rates if prices in the bond market become more volatile.
The interest rates will rise.
If prices in the bonds market become more volatile, the risk of bond markets increase, the demand for bonds decrease, and shifts the demand curve of bonds to the left, so the interest rates will rise.
6. An important way in which the Federal Reserve decreases the money supply is by selling bonds to the public ,vsing the loanable funds framework ,show what effect this action has on interest rate.
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