Interest Rates and Government Bonds - a Broken Relationship?
Rob’s comments below are in italics.Derek’s comments below are in normal font.
We’re going to talk about interest rates on bonds today. What’s going on that people need to know about here?
Well, a few years ago, we did a piece on this. What I said was that the interest rates being commanded were a result of several different factors. One of them is the basic rate for basically hiring some money for a period. Another factor is how reliable you regard the borrower as being.
The other one was what you expected the exchange rate to move over the loan period. I probably also said that the classic…
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