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Credit Risk-Free Bonds

Please refer to p93 of Volume 2 in the curriculum, or to p109 of Book 2 in SchweserNotes.

When describing credit risk free bonds, the material states that:

Usually an increase in short-term rates increases the yields on medium- and long-term
bonds. Medium- and long-term bond yields may actually fall, though, if the interest rate
increase is gauged sufficient to slow the economy.

Can someone please explain this

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