Market expectation of the future interest rate

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1. Can you expain the what is venture capital and stages of Financing in Venture Capital Market

Seed-Money Stage:

Start-Up:

First-Round Financing:

Second-Round Financing:

Third-Round Financing:

Fourth-Round Financing:

2. True or False. If liquidity premium influences the yield curve, the forward rate overestimates the market’s expectation of the future interest rate. Provide at least five sentences of Explanation or calculation to support your answer.

3. True or False. According to the Pure Expectations Theory, other things being equal, an expected increase in interest rates will increase the demand for long-term funds by borrowers and decrease in the supply of long-term funds by investors. As a result, the shape of the yield curve will be an upward sloping yield curve.Provide at least five sentences of Explanation or calculation to support your answer.

Reference no: EM131943005

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