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Why is bond demand curve downward slopping? Why is bond supply curve upward slopping?.
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- What is the relationship between the PV and the market interest rate? Does a lower market rate impact the price of the bond? Why?Why do noninvestment-grade bonds have much higher direct costs than investment-grade issues?What is duration gap model? Explain the concept of duration. How duration measure can be used to protect a financial intermediary against interest rate risk?