Answer:
1.The shape of the yield curve is a normal yield curve(increasing).
2.The expectation that the investors are likely to have about future interest rates is that the interest rates may raise in future
Explanation:
1. The shape of the yield curve is a normal yield curve(increasing) and it is called normal yield curve in which the given table had EAR increasing with duration.
Normal yield curve can be seen as either a upward sloping or a curve that has a positive slope in which we have lower interest rates for short term debts as well as higher interest rate for long term debts,
2. The expectation that the investors are likely to have about future interest rates is that the interest rates may raise in future because from a normal yield curve the future expectation on the interest rates is increasing while For a inverted yield curve the future expectation on interest rates is decreasing.
Answer:
Difference between Departmental store and chain store. Department stores are offering a wide variety of goods for retail sale, while chain stores are retail outlets in various locations under the same brand and management
Explanation:
Answer:
8.53 years
Explanation:
Calculation for the duration of the bond
The first step is to calculate for Change in Bond Price
Change in Bond Price = -(30)/1,170
Change in Bond Price = -0.0256×100
Change in Bond Price =-2.56%
Second step is to find the Effective Duration
Effective duration = -0.0256/0.0030
Effective Duration = 8.53 years
Therefore the duration of this bond will be 8.53 years
Here is my answer. DECREASING THE MONEY SUPPLY AND RAISING THE INTEREST RATES is what happens when the Treasury Bonds are being sold by Fed on the open market. An open market is also the same with free market wherein there are only minimal restrictions. Hope this helps.
Because eventually it could run out if not used efficiently