Interest can be defined as the price of credit and also as a rate of return Question 21 options:True False
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Interest can be defined as the price of credit and also as a
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- which one is correct please confirm? QUESTION 27 The term structure of interest rates is related to the ____ risk premium. a. seniority b. marketability c. default d. maturityWhat is expectations theory of the term structure of interest rates? Group of answer choices a. Long term interest is equal to average short-term interest rates. b. Average rates is the term of structure of interest rates. c. Short-term interest is equal to long-term interest rates. d. Long term interest is the sum of all short-term interest rates.Formula for interest rate parity?
- which of the following is necessary to solve a discount problem? a.future amount b.interest rate c. number of periods d. all of the abovei. When interest rates __________, the market required rates of return ________, and thebond prices will ________.Which of the following is not a determinant of interest rates? a) The Required Rate of Return b) The Liquidity Risk Premium c) The Re-investment Risk Premium d) The Maturity Risk Premium e) None of the above
- Briefly explain the followinga. Relation between present value and interest rateWhich of the following most accurately describes the behavior of credit default swaps?a. When credit risk increases, swap premiums increase.b. When credit and interest rate risk increase, swap premiums increase.c. When credit risk increases, swap premiums increase, but when interest rate risk increases, swap premiums decrease.Explain Interest Rates and Inflation Expectation?
