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We have seen computation of present value using single discount rate. But the right way to value a cash flow of a bond is to use multiple discount rates, i.e valuing the cash flows of a bond by using different discount rates that are unique to the time period in which a cash flow will be received.
Historically, three types of shapes have been observed for the yield curve. The relative change in the yield for each treasury maturity is known as a
EOQ
Once capital markets are integrated, it is hard for a country to maintain a fixed exchange rate. Explain why this may be so. Answer: one time capital markets are integrated int
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