1.Consider two types of bonds in the market: US Treasury bonds and European Government Bonds (bonds issued...

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Finance

1.Consider two types of bonds in themarket: US Treasury bonds and European Government Bonds (bondsissued by governments of countries in the European Union.). Alsoconsider the Greek government-debt crisis happened in 2009. Use thefigures of both bond market and market of loanable funds toillustrate the effect of the crisis on bond prices and interestrates of these two types of bonds. (20 points)

(Hint: recall the story of“a flight to quality”)

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The Greek financial crisis was a series of debt crises that started with the global financial crisis of 2008 The Greek financial crisis had two primary causes Government economic mismanagement fraud and an absence of public accountability and economic imbalance that was ill    See Answer
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