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Lina20 [59]
3 years ago
15

Determinants of market interest rates

Business
1 answer:
ollegr [7]3 years ago
7 0

Answer:

1. Real risk-free rate.

2. Nominal risk free-rate.

3. Inflation premium.

4. Liquidity risk premium.

5. Liquidity risk premium.

6. Maturity risk premium.

Explanation:

Market interest rates can be defined as the amount of interests (money) paid by an individual on deposits and other financial securities or investments. The factors that typically affect the market interest rate known as the determinant of market interest rates are;

1. This is the rate on short-term U.S. Treasury securities, assuming there is no inflation: Real risk-free rate r*

2. It is calculated by adding the inflation premium to r*: Nominal risk free rate.

3. This is the premium added to the real risk-free rate to compensate for a decrease in purchasing power over time: Inflation premium.

4. This is the premium added as a compensation for the risk that an investor will not get paid in full: Liquidity risk premium.

5. This premium is added when a security lacks marketability, because it cannot be bought and sold quickly without losing value: Liquidity risk premium.

6. This is the premium that reflects the risk associated with changes in interest rates for a long-term security: Maturity risk premium.

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Roman55 [17]

Answer:

See the explanation for the answer

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TO: SCR Support Staff and Users

FROM:  [Student name]

SUBJECT: Installation of TIMS

We need to agree on an installation plan as the deadline for implementation of TIMS approaches.

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All system functions performed in the test environment have been successfully executed, so we are looking for a smooth change in phase operation.

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Introduction of system and                     Tutorials

overview of objectives.

Startup, log-in, and shut                          User manual

down procedures

System options and commands            Group training

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summaries, etc.  

4.

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5 0
3 years ago
In this type of budget, the master budget is based on a single prediction for sales volume, and the budgeted amount for each cos
SOVA2 [1]

Answer:

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3 years ago
Last year mike bought 100 shares of dallas corporation common stock for $53 per share. during the year he received dividends of
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3 years ago
A single server model with infinite calling population, first-come, first-served queue discipline, Poisson arrival rate and expo
Elden [556K]

Answer:

3.5 customers

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All other information which is given is not relevant. Hence, ignored it

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3 years ago
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