siavosh

nicob Wrote:
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> 1.
> A. the drop in demand for L.t bonds would drop the
> price pushing the yield curve up.
> can't be B - would increase the price. C...given
> they're saying inflation is subsiding, could
> assume a lower inflation premium would be needed.
> also, if inflation is subsiding, is that because
> the CB stepped in and put pressure on ST rates,
> which would invert the yield curve?
>
> 2. I get $121.78
> 3.10(1.10) / 0.128 - 0.10 = $121.785
>
> 3. B
> lower/upper bounds of options?


Supply fell SHORT of demand, indicating increasing DEMAND, are you guys reading?