The risk of repayment on bond suddenly increases

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Reference no: EM131576199

If the risk of repayment on a bond suddenly increases what will happen to the price of the bond today? How would a decrease of inflation expectations affect the price of a bond today? If a bond is backed by collateral (a "secured" bond) would you expect it to have a lower or higher interest rate than a bond not backed by collateral (an "unsecured" bond)? Explain your answers.

Reference no: EM131576199

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