So longTermBonds are worth less money, n therefore must pay a higher yield to be worth *anything* at all
So longTermBonds are worth less money, n therefore must pay a higher yield to be worth *anything* at all
Why?
1) Fed reserve sets the rates.
2) Fed is holding interest rates high to make borrowing dollars expensive for banks rn to fight inflation and "burn money" from the system by forcing ppl + banks to pay off vAPR debt
Why?
1) Fed reserve sets the rates.
2) Fed is holding interest rates high to make borrowing dollars expensive for banks rn to fight inflation and "burn money" from the system by forcing ppl + banks to pay off vAPR debt
👉Find "What 200 Years of Data Tell Us About
the Predictive Variance of Long-Term
Bonds" via papers.ssrn.com/sol3/papers.... #EconSky #longtermbonds
👉Find "What 200 Years of Data Tell Us About
the Predictive Variance of Long-Term
Bonds" via papers.ssrn.com/sol3/papers.... #EconSky #longtermbonds