Term Structure of Interest Rate. Candidate number 25909 Section 2 In this section‚ I will introduce some essential components about term structure‚ explain the IS/LM model to reveal the relation between term structure and GDP growth and lastly bring in some empirical evidence to support this relation. 2.1 Some basic terminologies and equations Bond‚ being one of the most popular financial products‚ is one example of firm’s and nation’s lending and borrowing. There are two ways a bond delivers
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The three year zero rate is 7% per annum and the four year zero rate is 7.5% pa (both continuously compounded). What is the one year (continuously compounded) forward rate starting in three years’ time? (2 marks) With the formula with continuously compounded‚ = =0.09 =9% The one year forward rate starting in three years’ time is 9% 1. The zero rate curve is flat at 6% pa with semi-annual compounding. What is the value of a FRA where the holder receives interest at the rate of 8% per annum with
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Interest rate is the rate paid by the debtor for using the money of creditor (http://www.investorwords.com/2539/interest_rate.html 1.12.2011.). Normally‚ the interest rate charged by percentage of the money borrowed for a period of one year. For example‚ debtor borrowed £100 from the bank for one year; the interest rate of that year is 10%‚ then the debtor has to pay £110 to the bank after one year for using their money‚ the extra £10 is the interest. Moreover‚ the interest rate played an important
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B Jeff Puccini 3/29/2011 Why Crime Rates Will Drop? This important cause which is some experts think strong economic could let crime rates to drop. However‚ the fact is actually not‚ before 1992‚ American has strong economic. However‚ in fact‚ in these times‚ crime rates were very high. Furthermore‚ according to “Levitt D. Steven and Stephen J. Dubner” (Freakonomics 3). We know homicide fell at a greater rate during the 1990s than any other sort of Crime and number of reliable studies
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BUSINESS IMPLICATIONS OF EXCHANGE-RATE CHANGES BUSINESS IMPLICATIONS OF EXCHANGE-RATE CHANGES Market Decisions On the marketing side‚ exchange rates can affect demand for a company’s products at home and abroad. A country such as Mexico may force down the value of its currency if its exports become too expensive owing to relatively high inflation. Even though inflation would cause the peso value of the Mexican products to rise‚ the devaluation means that it takes less foreign currency to
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Aim: The rate at which a reaction occurs‚ or takes place‚ is affected by various factors‚ such as the temperature at which the experiment is conducted in‚ the pressure which is given‚ the surface area which is exposed‚ use of catalysts‚ and the concentration. In this investigation‚ I would be investigating the affect of surface area‚ or particle size‚ in the rate at which a reaction occurs. Background Information: The more finely divided the solid is‚ the faster the reaction happens. A powdered
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quickest. There wasn’t any flaws in this experiment. When changing this experiment use different brands‚ scents or waxes and see which one would burns faster. The results were the unscented candle burned faster but they both burned at the same speed rate so it doesn’t really matter too much. Other brands could change the effect of the burn rate than other brands that are out there and they may also be made differently. There are more than one wax and that might change the burn rate of the candles. Some
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TITLE: Effect of the caffeine on the heart rate OBJECTIVE: To investigate the effect of the caffeine on the heart rate of living organisms. INTRODUCTION: * Daphnia Daphnia are small‚ planktonic crustaceans‚ between 0.2 and 5 mm in length. Daphnia are members of the order Cladocera‚ and are one of the several small aquatic crustaceans commonly called water fleas because of their saltatory swimming style (although fleas are insects and thus only very distantly related). They
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difference in heart rates before and during intense exercise. Aim: The aim of the investigation was to discover how the heart rate varied with the intensity of exercise. The heart rate is a term describing the regularity of the cardiac cycle. The heart rate is the amount of times it contracts (beats) in a unit of time‚ nearly always per minute. At rest the adult female’s heart rate regulates 75 bpm (beats per minute) but this varies between people. If the heart rate is measured before‚ during and after
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869 Basal Metabolic Rate: History‚ Composition‚ Regulation‚ and Usefulness A. J. Hulbert1‚2‚* P. L. Else1‚3 1 Metabolic Research Centre‚ University of Wollongong‚ Wollongong‚ New South Wales 2522‚ Australia; 2Department of Biological Sciences‚ University of Wollongong‚ Wollongong‚ New South Wales 2522‚ Australia; 3Department of Biomedical Sciences‚ University of Wollongong‚ Wollongong‚ New South Wales 2522‚ Australia Accepted 10/31/03 of animal respiration blossomed with the emergence of physiology
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