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A sudden drop in energy prices that causes inflation to fall to zero for the next...

A sudden drop in energy prices that causes inflation to fall to zero for the next five years. Explain how this will effect the five-year bond and the corresponding five-year TIPS. Be as specific as possible. Will bond demand, supply increase or decrease? What is likely to happen to the spread in interest rates between the two markets?

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Rahul Sunny answered 1 year ago
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