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Examines the declining Yields and impact on bond prices

Yields in the Australian bond market have been declining over the last few years. Write a report that examines \ the declining Yields and the impact this has had on bond prices. Your report should include a section describing how bonds are priced Useful references:

• (1) The recommended textbooks for the subject
• (2) Reserve Bank of Australia. 2015, Domestic Financial Markets. Statement of Monetary Policy, February, pp. 49-52.
• (3) Reserve Bank of Australia. 2015, Box B: The Decline in Bond Yields and Inflation Expectations. Statement of Monetary Policy. February. pp. 34-35. Written reflection to be completed by each team member. How would decreasing bond yields affect your decision on including bonds in your investment portfolio?