Answer:
Four factors that effect a bond yield are:
1. Interest rates
2. Inflation
3. The yield curve
4. economic growth
Explanation:
Four factors that affect a bond yield are:
1. Interest rates: higher interest rates by the bank often leads to rises in corporate bond yields.
2. Inflation: with high inflation level in the economy, in which prices of commodity increases, the credit risk also increases, this results in positive pressure on yields.
3. The yield curve: this gives or predicts the economic situation in terms of growth and output. Therefore, this leads to investors to put their capital in either short-term securities or long-term bonds which effects bonds in general.
4. economic growth: this leads to increased revenues and profits for companies, and in turn results in lower yields on bonds.
