What types of risks should bond holders be aware of and how does these affect bond prices and yields?

All subsequent pages should have page number, including bibliography and footnotes. Font: Times New Roman, 12, line spacing 1,15, graphs allowed The following aspects will be taken into consideration: • Application of theory and critical analysis • Empirical analysis (statistical, tables, graphs, econometric analysis is appreciated but not mandatory) • Use of source materials (e.g. EUROSTAT, OECD statistics, World Bank statistics) • Structure (see below) • Spelling and grammar, academic style Paper should have following structure: A. INTRODUCTION (Your interpretation of the title, what issues you are exploring, the importance of the issues) B. MAIN BODY C. CONCLUSION (summarize your ideas, enumerate significant conclusions, convince the audience that you conclusions are sound and linked to the topic) D. Reference List (use the Harvard Referencing System to list all the books, articles, materials you have referred to in your essay: AUTHOR (date) Title. Town; Publisher. Page numbers. Alphabetical order by author’s surname.)

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