1. Chapter 5 How Do The Risk and Term Structure Affect Interest Rates 2. Chapter Preview In the last chapter, we examined interest rates, but made abigassumption – there…

Slide 1Time to Invest in Short-Term Bonds? First Quarter 2010 Slide 2 2 Disclosures Past performance does not guarantee future results. The performance data quoted represents…

highlights 7.1 Face value - This principal value is stated on the bond certificate. Par value and face value are almost always the same and used interchangeably. regular…

Slide 1Introduction to Savings & Investments Slide 2 Objectives 1.Discuss the need & reason for saving & investing. 2.Evaluate methods of savings. 3.List the…

Slide 1 Chapter 11 Bond Yields and Prices Slide 2 Learning Objectives Calculate the price of a bond. Explain the bond valuation process. Calculate major bond yield measures,…

Slide 1 Review Bond Yields and Prices Slide 2 Learning Objectives Calculate the price of a bond. Calculate major bond yield measures, including yield to maturity, current…

? ? Chapter 5 The Behavior of Interest Rates Interest rate are low today because of: QE-4, Fed buying $30 b of MBS and $35 b of Treasury bonds each month. Eurozone debt crisis…

Money & Banking - ECO 473 - Dr. D. Foster Interest Rates III: Term Structure Why do Interest Rates differ? Default risk (Il)liquidity risk “Risk premium” = i - iT-Bill…