Question

If in an economy real rate of interest is 0.25% and perpetual income from a bond is ₹ 500 then find out what is the current and will be the new price of the bond as some people are speculating that interest rate may rise to 2.5%. Now analyse what the speculator will do to gain from this anticipated fluctuation in the money market and relate the concept with liquidity trap?-BEAR concept

Answer 1

Answer:

As a fundraising and investment source, they provide the main advantages that equity financing would generally provide, as well as dissolve the ...