Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
12th Edition
ISBN: 9780134078779
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Chapter 25, Problem 5.3P

Sub part (a):

To determine

What happens to the value of the old bond.

Sub part (b):

To determine

Why would bond prices rise if people feared forthcoming of a recession.

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