Market segmentation of the term structure of interest rates, Financial Management

Assignment Help:

Define the market segmentation of the term structure of interest rates.

Market segmentation:

And also the investors’ expectations regarding future interest rates and their preferences for liquidity, other theory, the market segmentation theory, recommends that the bond market is really made up of a number of divide markets illustrious by time to maturity, each along with their own supply and demand conditions. Several classes of investors and issuers will have a strong preference for exact segments of the yield curve and, thus, the curve will not of necessity move up or down and over its entire range.


Related Discussions:- Market segmentation of the term structure of interest rates

Finance company vital role in investment intermediaries, How is the finance...

How is the finance company play a vital role in investment intermediaries? Finance companies: Finance companies make loans to corporations and individuals by giving consu

Pvif, how do we get the pvif of a perpetuity

how do we get the pvif of a perpetuity

Determine the amount of financing required - cost of capital, Determine the...

Determine the Amount of financing required   The last factor determining company's cost of funds is the amount of financing required, where cost of capital increases as the fin

Hedging strategy, Crown Co. is expecting to receive 100,000 British pounds ...

Crown Co. is expecting to receive 100,000 British pounds in one year. Crown expects the spot rate of British pound to be $1.49 in a year, so it decides to avoid exchange rate risk

Cost of capital, discuss the cost of capital in finance

discuss the cost of capital in finance

Define insurance company that takes on the greater risks, Which type of ins...

Which type of insurance company generally takes on the greater risks: a life insurance company or a property and casualty insurance company? The risks protected in opposition to

Cash flow& funds flow statement , Explain cash flow and funds flow analysis...

Explain cash flow and funds flow analysis with suitable example from an existing corporate entity for at least three years i.e. 2008, 2009.2010.

Define decision rule for accepting or rejecting projects, What is the decis...

What is the decision rule for accepting or rejecting proposed projects while using net present value? While using the net present value decision rule any project along with a net

#title.case let., this case has been framed in order to test the skills

this case has been framed in order to test the skills

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