It (almost) goes without saying that when lending funds, a lender will want the principal returned plus some interest rate to compensate them for taking the risk of not seeing their capital again and losing the liquidity the capital affords them. The interest rate charged will always reflect a myriad of concerns the lender has, including the length of the loan, the 'risk' of the borrower, however that is perceived, and the influence of macroeconomic forces like inflation, growth, and unemployment on the conditions of repayment.
In this lecture we'll look at a particular macroeconomic pathology: stagflation, and ask how it affects yields on bonds domestically and internationally.
Click below for slides and links to the programs used in the lecture.
Slides
Program