QUESTION 7 (5 pts) During COVID-19 a lot of central banks in the world have...
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Finance
QUESTION 7
(5 pts) During COVID-19 a lot of central banks in the world have kept short-term interest rates very low or even negative in order to stimulate the economy.
- What impact does the short-term interest rate have on the long-term fixed income securities in the short run and long run?
( Hint: your analysis should be linked to the knowledge from fixed-income securities. Simply copying and pasting some contents from the website is not allowed and you will not get marks.
Your answer cannot exceed SEVEN lines; please answer this question in your WORD or paper sheets. )
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