Unformatted text preview: c) If BoC signaled to increase the interest rate, BoC will raise overnight rate which instantly affect the yield for short term bond. As the yield for short term bond increases, and the yield for long term bond won’t change much in the short term. The yield curve will faltten....
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- Spring '12
- Finance, BoC, 10 year, 30 year, GoC Bond, yr GoC bond