Find the direction of the bond yields increase or decrease


Find the direction of the bond yields (increase or decrease) based on the following scenarios? Please provide brief explanations (based on the risk-return trade-offs).

a. Decrease in the bond price

b. Increased liquidity in market

c. Increased default probability

d. Increased term (longer maturity) of investment

e. Increase in tax rates

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Financial Management: Find the direction of the bond yields increase or decrease
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