Why does it make sense to say that interest rate is price

Assignment Help Finance Basics
Reference no: EM13477367

Why does it make sense to say that the interest rate is the price to rent money? Explain why the real interest rate is the reward for saving? Why does a mortgage typically have a lower interest rate than a car loan? Since 1950, the interest rate for corporate bonds have averaged a higher interest rate than long-term government bonds. Why?

Reference no: EM13477367

Questions Cloud

Compute the real interest rate over the past 24 months by : question 1. what happens to bond prices quantities and interest rates if make sure to include the supply and demand
How do we define risk what does it mean to diversify the : how do we define risk? what does it mean to diversify your portfolio and what are you trying to gain by so doing? what
Prepare a preliminary analysis plan for this study which : 1 build the management-research question hierarchy for this opportunity.2 evaluate the appropriateness of the
Sounds made especially on the phone to let one person know : active listeningbull ineffective listening - is one of the most frequent causes of misunderstanding.bull empathic
Why does it make sense to say that interest rate is price : why does it make sense to say that the interest rate is the price to rent money? explain why the real interest rate is
What happens to the supply and demand for money and the : what happens to the supply and demand for money and the price interest rates and the quantity of money if there is make
Compute the real interest rate over the past 24 months : calculate the real interest rate over the past 24 months using the 30 year treasury bond rate as the nominal interest
Ms moulton read the letter associated with the citizen : performance standards nfpa 1021 4.3.2objectives1. appraise the purpose of community relations as a fire officer2.
What happens to the bond prices quantities and interest : what happens to bond prices quantities and interest rates if make sure to include the supply and demand graph for bonds

Reviews

Write a Review

Finance Basics Questions & Answers

  Determine the ending inventory balances

Jobs24-A and 24-C were completed during the first week of July. No additional materials costs were incurred, but Job 24-A required $960 more of direct labor, and Job 24-C needed an additional $1,610 of direct labor. Job 24-A was composed of 1,200 ..

  Compute the maximum period

Dombers Corporation and Munn Corporation engaged in a business combination. In accounting for the combination, goodwill of $400,000 was recognized.

  Advantages and disadvantages of debt financing

How does the use of debt financing affect the rate of return that shareholders require on their investment in the firm's shares and also discuss and explain the advantages and disadvantages of debt financing.

  Draft your financial analysis report of apple

Draft your financial analysis report of Apple Inc, including the given sections

  What is the stock current price per share

Assuming that the company maintains the same payout ratio, what will be its stock price following the recapitalization? Assume that shares are repurchased at the price calculated in Part a. Round your answer to the nearest cent. Do not round inter..

  What is the npv of accepting the system

What will be the annual net savings? Assume that the T-bill rate is 2.6 percent annually.

  Calculate market value of outstanding preferred stock

Jones Design wants to estimate the value of its outstanding preferred stock. The preferred stock issue has an $80 par value and pays an yearly dividend of $6.40 per share.

  Suppose that the airports hold 5 standard deviations in

jetfuel is thinking about serving several other municipal airports in the puget sound region and one of their

  Calculate the expected dividend

Integrated Potato Chips paid a $1 per dividend yesterday. You expect the dividend to grow steadily as a rate of 4 percent every year. Determine the expected dividend in each of the next 3 years?

  Describing the economic growth

Why is economic growth important? Why could the difference between the 2.5 percent and 3 percent annual growth rate be of great significance over many decades?

  What is the incremental free cash flow for year one

what is the incremental free cash flow for year one? A)22,305 B)18,875 C)24,220 D)19,985 Please provide explanation for your answers.

  Calculate the expected net income

Annual expenses are expected to be: labor of $50,000; $30,000 in rent; $10,000 in equipment depreciation. The tax rate is 35%. Calculate the expected Net Income.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd