is day 0‚ the loan will be initiated on day 60 and will mature on day 210.) The implied forward rate over 150 days‚ and hence the rate on 150-day FRA‚ is 2.5%. The actual interest rate over that period could be either 2.4% or 2.6%. (a) If the interest rate on day 60 is 2.6%‚ how much will the lender have to pay if the FRA is settled on day 60? How much if it is settled on day 210? (b) If the interest rate on day 60 is 2.4%‚ how much will the lender have to pay if the FRA is settled on day 60? How much
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statement concerning risk premium? A. The greater the volatility of returns‚ the greater the risk premium. B. The lower the volatility of returns‚ the greater the risk premium. C. The lower the average rate of return‚ the greater the risk premium. D. The risk premium is not correlated to the average rate of return. 5. You bought 100 shares of stock at $20 each. At the end of the year‚ you received a total of $400 in dividends‚ and your stock was worth $2‚500 total. What was your total return
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Chapter 1 Role of Financial Markets and Institutions 1. Financial market participants who provide funds are called A) deficit units. B) surplus units. C) primary units. D) secondary units. 2. The main provider(s) of funds to the U.S. Treasury is (are) A) households and businesses. B) foreign financial institutions
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temperature)‚ and 70°C. This investigation tested the hypothesis: The rate of osmosis will increase as the temperature increases 2x2x2cm cubes of potato were weighed and then placed into 100mL of 10% NaCl solutions for 10 minutes. After 10 minutes the cubes were again weighed to determine the amount of mass that they lost/gained and thus get an indication of the rate of osmosis. The results collected showed that the rate of osmosis was highest in the 70°C solution and lowest in the 20°C solution
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Effects of Raising Interest Rates If a central bank increases the base rate‚ this tends to increase all major interest rates in the economy. This means interest rates for both savers and borrowers will increase. Higher interest rates will have various economic effects: 1. Increases the cost of borrowing. Interest payments on credit cards and loans will be more expensive. Therefore this discourages people from borrowing and saving. People who already have loans will have less disposable income
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5.0 Contents 8 5.1 Factor That Effect Exchange Rates in Long Run 8 5.2 Exchange rates in short run (A supply and demand Analysis) 10 5.3 Factor that determinant exchange rate 11 5.3.1 Shift the demand for domestic assets 11 5.4 Other Factors that effects exchange rates and its volatility 12 5.4.1 International financial crises 12 5.4.2 Speculators effect 12 5.4.3 Central bank intervention policy 13 5.2 The effects of exchange rate and volatility 14 5.2.1 International trade‚ export
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in 2010. India is also one of the world’s five largest producers of livestock and poultry meat‚ with one of the fastest growth rates‚ as of 2011. India exported about 2 billion kilograms each of wheat and rice in 2011 to Africa‚ Nepal‚ Bangladesh and other regions of the world. Aquaculture and catch fishery is amongst the fastest growing industries in India. Between 1990 and 2010‚ Indian fish capture harvest doubled‚ while aquaculture harvest tripled. In 2008‚ India was the world’s sixth largest
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Discussion The purpose of this experiment was to determine if splitting a bean would affect its rate of respiration. Splitting a bean does not impact its rate of respiration. This is shown in the data‚ while the average rate of respiration for Whole beans is 1.35 and the rate of respiration for 1.16‚ the standard error of the mean is .15. Because the standard error of the mean is so high‚ they overlap in both of the data sets‚ which shows that the data is very similar. This is better shown in the
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Free exchange Savers’ lament The complex effects of low interest rates on consumption and investment Dec 1st 2012 | from The Economist print edition WHEN interest rates hit double digits in the late 1970s‚ house-builders sent planks of wood to the Federal Reserve in protest. With rates stuck near zero‚ the protests now come from the opposite direction. The retired complain of a “war on savings”. The Fed cut rates to current levels at the end of 2008 and has promised to keep them there until
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can be potentially more important for the next generation than it is for us. The issue is birth rate or population‚ what it is now and what it will be in the future. First of all‚ what is birth rate? The birth rate is the total number of births per 1000 of a population in a year. As you may know‚ by subtracting the death rate from the birth rate we will result in the rate of population. Here is a display of the birth rate from 1950 to 2015. Year Birth rate 19501955 37.2 19551960 35.3 19601965 34.9
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