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It has been identified that there is an importance in the relationships between bond characteristics such as coupon rate, time to maturity and yield....

It has been identified that there is an importance in the relationships between bond characteristics such as coupon rate, time to maturity and yield. A further issue of importance to market participants is the long-term relationship between bonds of different credit (risk) classes, different maturities and in different markets.

a.  Why is it important to understand the long-term relationships between bonds with different risk classes and different maturities?

b. What does this paper conclude about the relationship between Australian dollar euro-bonds and Australian government bonds?

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