Explain relationship between interest rate and bond price, Financial Accounting

Assignment Help:

1. Would export businesses prefer a rising or declining dollar? Would it be the same for a European tourist on a budget and visiting the Grand Canyon? Explain your answer.

2. What are 4 ways that the FED can use to create money? What are the most powerful one and what method the FED to create a gradual easing of the money supply either created or destroyed most often uses?

3. What is the meaning of the following: a stock option price, strike price and what are a put and a call?What is the advantage or disadvantage of purchasing stock options over stocks? What function do Mutual Funds play with Stock Market investments?

4. What is the difference between the discount rate, prime rate and the subprime rates of interest? Which interest rate in particular created the 2008 recession? Explain how that happened.

5. What is the difference between the FED targeting the interest rate vs. inflation and which one is Bernanke using today? Name a few countries that use this method today.

6. Give a brief history of how banking evolved into a sophisticated operation. Begin first with the Goldsmith and sum up with the Banking system that we experience today.

7. During the 1980 period, what did the FED Chairman Paul Volcker do to reduce double digit inflation of the 1970's? What was the name of the person and or the economic school's approach that Volcker used?

8. What is the relationship between the interest rate and bond prices? Is there any difference between T-Bills vs. Corporate bonds in reaching your assessment? When the stock market falls, where do you suppose that most investor place their money and why?

9. How does the FED use the bond market to create and destroy money? Which method do developed countries employ to reduce the chance of experiencing inflation? What about Banana Republicans and inflation, do they have this means available to them?


Related Discussions:- Explain relationship between interest rate and bond price

Need answer, Suppose a company will issue new 25-year debt with a par value...

Suppose a company will issue new 25-year debt with a par value of $1,000 and a coupon rate of 8%, paid annually. The tax rate is 40%. If the flotation cost is 3% of the issue proce

Calculate the pv and npv, Question 1 Suppose you take out a loan of $10...

Question 1 Suppose you take out a loan of $10,000, repayable by five equal annual instalments. The interest rate is 10% per year. (a) How much do you need to repay per year

Subsidiary company consolidation, Circumstances under which a subsidiary c...

Circumstances under which a subsidiary company can be excluded from consolidation Consolidated financial statements shall include all subsidiaries of the parent A parent need

Wills-executorship laws and accounts, WILLS A will is the legal declarati...

WILLS A will is the legal declaration by a person of his wishes or intentions regarding the disposition of his property after his death, duly made and executed according to the p

Ordinary annuity , Number of Periods of a one Payment a) If you deposit ...

Number of Periods of a one Payment a) If you deposit money today in an account that pays 7.5% yearly interest, how long will it take to double your money? b) What's the future

Illustration of bankruptcy, Illustration of Bankruptcy Njuguna Mwandawi...

Illustration of Bankruptcy Njuguna Mwandawiro, carrying on a business as a trader in Likoni, Mombasa, finds himself insolvent, and on 15 August 1997 files his petition in bankr

Evaluate the earnings per share, Q. A ltd. Company has equity share capital...

Q. A ltd. Company has equity share capital of Rs. 5,00,000 divided into shares of Rs. 100 each. It wishes to gain further Rs. 3,00,000 for expansion cum modernization plans. The co

Personal financial specialist, Personal Financial Specialist (PFS) - CERTIF...

Personal Financial Specialist (PFS) - CERTIFIED PUBLIC ACCOUNTANT who specializes in PERSONAL FINANCIAL PLANNING and completes a series of requirements which compriseexperience, ed

Write Your Message!

Captcha
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