FIN622 GDB Solution & Discussion
In a monetary policy, governments try to fix an interest rate which can boost the economic activities in any economic setup. It is proved by different research studies that changes in interest rate directly impact the bonds returns. Here, you are required to analyze that interest rate gain/loss on Treasury Bonds (T-bills) has any impact (direct or indirect) on Stock prices? If yes then what will be the impact on stock prices? Support your answer by providing logical reasoning.
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