Making Your First Million

Bonds Market

When the Fed buys government bonds on the open market,?

the market rate of interest on government bonds are lowered AND the market rate of interest on corporate bonds are lowered.

the market rate of interest on corporate bonds are increased.

government yields drop but corporate yields rise.

government and corporate yields rise.
I think it’s the first choice, what do you guys think?

Only A is correct. It would go down both bonds.

Irish PM hopes for tentative bond market return in 2013

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