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3 September, 05:18

What will happen to bond prices if terrorism ended and the world's nations unilaterally disarmed and adopted free trade policies? Why?

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  1. 3 September, 08:09
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    If terrorism ended and the world's nations unilaterally disarmed and adopted free trade policies, Bond prices would drop rapidly which means there would be no more wars. Bond prices would fall straight down at high speed. If there were no more wars, the Government wouldn't need to buy weapons, then it wouldn't need to sell bonds to raise the money to pay for them. Thus, the value of bonds would diminish.
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