long-term market interest rate

Related BrainMass Solutions

• Stock Market Evaluation

  The increase in home sales also lifted the Dow and NADAQ while the long term bond rate slipped due to this event. 12/24/1009 - At this date short term interest rate has decreased while the long term interest rate and markets moved to upwards.

• Calculate Market Value Capital Structure: Schoof Company

  Market value of bond = Interest / Discount rate *(1-1/(1+discount rate)^number of years) + Face value / (1+discount rate)^number of years = 1000*6%/10%*(1-1/(1+10%)^20) + 1000/(1+10%)^20 =659.4574512 Market value of Long term Debt= 659.4574512*30000

• Financial Derivatives - Increasing Portfolio Yield

  If a money manager is expecting the current short-term interest rates to increase more than the current yield curve, than he would pay a fixed long-term interest rate and receive floating short term rate.

• Multiple Choice Questions

  Treasury bills, long-term government bonds, long-term corporate bonds, small-company stocks, large-company stocks e) large-company stocks, small-company stocks, long-term corporate bonds, long-term government bonds, U.S.

• Freeport Bank and Hickman Savings and Loan

  This negative yield curve means that long-term interest rates are lower than short-term rates.

• Define long-term bond

  Long-term bonds are normally open to a greater interest rate risk than short term bonds for two reasons: there is always a greater chance that the interest rates will increase within a longer time period than within a shorter time period and long-term

• the yield curve

  Since real rate of interest = nominal rate of interest - inflation rate It is more desirable to have a lower inflation rate and a higher nominal interest rate 4) Assume that these current yields exist: long term government securities yield 9%, 5

• 10-year bond

  281788 10-Year Bond The values of outstanding bonds change whenever the going rate of interest changes. In general, short-term interest rates are more volatile than long-term interest rates.

• Three theories used to describe the shape of the yield curve

  For example, if investors have an expectation of what 1-year interest rates will be next year, the 2-year interest rate can be calculated as the compounding of this year's interest rate by next year's interest rate.

• Current yields on different bonds

  There is expectation of higher yield in long term during normal market condition then short-term securities as it is more risky. 2 Although the market price of long-term bond is much more sensitive to changes in market interest rate than the market