How the yield curve may respond to prevailing conditions


How the Yield Curve May Respond to Prevailing Conditions.

Consider how economic conditions affect the default risk premium. Do you think the default risk premium will likely increase or decrease during the next 6 months? How do you think the yield curve will change during this time? Offer some logic or current reference(s) to support your answers.

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Finance Basics: How the yield curve may respond to prevailing conditions
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