Link between problems in the middle east and bond prices

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Impact of War:

When tensions rise or a war erupts in the Middle East, bond prices in many countries tend to decline.

What is the link between problems in the Middle East and bond prices?

Would you expect bond prices to decline more in Japan or in the United Kingdom as a result of the crisis? (The answer is tied to how interest rates may change in those countries.) Explain.

Reference no: EM131227204

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