Chapter 14 Question 1: What distinguishes the mortgage markets from other capital markets? - The mortgage market is seured by real estate. - Mortgage interests are relatively low - Features of the mortgage are designed to reduce the likelihood of default - The borrower differs most commonly mortgage is households for cap markets is government or businesses - Mortgage has different amounts and maturities so no secondary market has been developed. Question 8: Lenders tend not to be as
Premium United States dollar Loan
experiment is to determine the rate law and the activation energy for the reaction between persulfate ion‚ S2O82-‚ and iodide ion‚ I-: S2O82-(aq) + 2 I-(aq) 2 SO42-(aq) + I2(aq) The rate law can be written as Reaction rate = (1) Where m and n are the orders with respect to S2O82- and I-‚ respectively‚ and k is the rate constant. Determining the rate law involves determining the values of m and n. The temperature dependence of the rate constant is given by (2)
Free Chemical reaction Chemical kinetics Chemistry
How is exchange rate determined. How important is the expected future exchange rate for exports and imports? 1. Introduction Exchange rate is the price of a currency expressed in another currency‚ it is one of the most important determinants of a country’s relative level of economic health. Exchange rate directly affects the prices of goods in foreign trade and foreign assets prices in the internal market‚ and indirectly the price of goods for the domestic market. A higher currency makes
Premium Inflation Currency Money
Introduction and Theory An investigative Cross-Country examination of the relationship between Commodities and Exchange Rates. The theoretical topic to be addressed will be to investigate the relationship between the fundamentals of exchange rates and commodities. In order to further current research‚ a variety of commodity and non- commodity currencies will be assessed. There will also be attempts to discern reasoning for the empirical results; relating to real life evidence such as compositions
Premium Inflation Exchange rate Foreign exchange market
Return = r= Risk Free rate + Risk Prem r=rRF+DRP+LP+MRP Risk Free Rate = rRF = r* + IP -effects of int rates on PV/Price of securities: int goes up‚ value of bonds goes down‚ stock goes down (NPV) Prices -factors that influence int rates/yield curve 1.production opportunities-return avail w/in an economy from inves. In productive asset; higher prod opp‚ higher return 2. Time preferences for consumption 3. Risk-change that fin asset won’t earn return promised 4. Inflation-price goes up over
Premium Investment Bond Finance
a‚ b) All children develop at their own rate and the term ’Sequence’ and ’Rate’ is used. The meaning for Sequence development is the order in which the child grows and the meaning for Rate is the speed that the child develops. The Development areas include Physical‚ social‚ communication and language‚ cognitive (intellectual)‚ emotional and behavioral and moral. Lots of the skills and the areas of development overlap one another so that the development is interconnected and linked which is called
Premium Developmental psychology Psychology Child development
1. Describe the path of interest rates in Canada since WWII and specifically the past 2 decades. Over the past several decades the path of the interest rates were able to be recorded and charted. Strictly after World War II‚ interest rates seemed to drop for a bit‚ speculated that after the hype of the Second World War‚ there was not enough jobs for the returning soldiers‚ causing a recession. When the 50s arrived‚ the Government began to invest more into national security. This spending concerned
Premium Inflation Economics Monetary policy
31) QUALITY OF DRIED FOODS AND DETERIORATIVE REACTIONS DURING DRYING Consumer demand has increased for processed products that keep more of their original characteristics. In industrial terms‚ this requires the development of operations that minimize the adverse effects of processing. The effect of food processing on finished product quality ultimately determines the usefulness and commercial viability of that unit process operation. In the particular case of food drying this indicates that loss
Premium Food Milk Chemical reaction
Labor rate variance is the difference between the actual labor rate and the applied overhead rate (standard rate multiplied by the number of actual hours worked). Consider this and respond to the following: • "Our workers are all under labor contracts. Therefore‚ our labor rate variance is bound to be zero." Do you agree or disagree that the labor rate variance will be zero if all workers are under labor contracts? Explain giving reasons. The concept of labor rate variance and its application
Premium Employment Addition Wage
7 years‚ pay 8% interest on a $1‚000 face value. However‚ interest is paid semi-annually. If your required rate of return is 10%‚ what is the value of the bond? How would your answer change if the interest were paid annually? 7) Sharp Co. bonds are selling in the market for $1‚045. These 15 year bonds pay 7% interest annually on a $1‚000 par value. If they are purchased at the market price‚ what is the expected rate of return? 8) You own a bond that pays $100 in annual interest‚ with a $1‚000
Premium Stock Investment Weighted average cost of capital