Suppose that on Friday, a company announces a new vaccine with99% effectiveness against all variants,...

Suppose that on Friday, a company announces a new vaccine with 99% effectiveness against all variants, available in late 2021. What will happen to the price of 10 year Treasuries?

A. The price falls

B. The price rises

Solutions

Expert Solution

The Price of the treasury Falls because will start investing in the risky stock market because of the reduction of the uncertainty and therefore they sell the Treasury securities, Hence The Price falls.

jeff jeffy answered 2 years ago

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