Over the next three years, the expected path of 1-year interest rates is 4, 1, and 1 percent. The expectations theory of the term structure predicts that the current interest rate on 3-year bond is A.1 percent.B.2 percent.C.3 percent.D.4 percent. 相关知识点: 试题来源: 解析 B...
百度试题 结果1 题目2. Interest rates have fallen sharply(sharp)over the last few weeks. 相关知识点: 试题来源: 解析 答案见上 反馈 收藏
i.e. in effect the long term interest rates are seen as an average of expected future short term rates. the YTM at any point depends on the ‘average’ yield which will take into account future expectations on interest rates. E.g. of the 1-year forward rates for the next 3 years are...
Interest rates unlikely to rise over 3 per cent for years.The article reports that interest rates in Great Britain are not forecast to go higher than 3 percent for the foreseeable future, according to ING Direct chief economist James Knightley.Thomas...
If the expected path of 1-year interest rates over the next five years is 1 percent, 2 percent, 3 percent, 4 percent, and 5 percent, the expectations theory predicts that the bond with the highest interest rate today is the one with a maturity of? 3;years1 year5;years4;years 相关知...
Interest rates have fallen over the seven years since a $1,000 par, 10-year bond was issued with a coupon of 7%. What is the present value of this bond if the required rate of return is currently four and one-half percent? (For simplicity, assume annual payments.)A. $1,068.72B. ...
Paragraph 3 ①Interest-rate rises aredauntingbecause much of the world has got used to an era of almost-free money. ②No G7 central bank has set interest rates above 2.5% in over a decade. ③Back in 1990 all of them were above 5%. ④Cheap financing has come to seem like anindelible...
ﻩAs interest rates consistently rise over a specific period, the market price of a bond you own would likely ___ over this period、 (Assume no major change in the bond’s default risk、) A. ﻩconsistently increase B. consistently decrease C. ﻩremain unchanged D. change in a direct...
The Fed’s prescription is to suppress demand (borrowing and spending)by raising interest rates. Summers, a former U.S. Treasury Secretary who presided over the massive post-2008 bank bailouts, is proposing to reduce demand byraising taxesorraising unemployment rates, reducing disposable income and...
That means if you buy a CD now, you can lock in today's high interest rates for years. Moreover, these accounts are FDIC-insured, offering "guaranteed principal protection," says Burskey. So, you can rest assured that your account is safe. Lock in today's high interest rates with a...