Hi All,
I was wondering if someone can help me with a few questions I have regarding some potential tax changes and how they may impact bond yields.
1) If corporate taxes are lowered to ~20%/21%, how would that impact bond yields? My understanding is that bond yields would decrease because bond supply would increase. This would result in lower bond prices, thus higher bond yields.
2) If bond interest expense deduction is removed completely, how would that impact bond yields? My thought process is that the supply of bonds would go down (it's not advantageous for corporations to issue bonds) and thus the yields would decrease as prices increase when supply decreases.
Any help would be appreciated!
Submitted December 17, 2017 at 12:22PM by simplevalue http://ift.tt/2B2fG1e
