The term structure of interest rates‚ also known as the yield curve‚ is a very common bond valuation method. Constructed by graphing the yield to maturities and the respective maturity dates of benchmark fixed-income securities‚ the yield curve is a measure of the market’s expectations of future interest rates given the current market conditions. Treasuries‚ issued by the federal government‚ are considered risk-free‚ and as such‚ their yields are often used as the benchmarks for fixed-income securities
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Investigating the relationship between the financial and real economy Konstantinos Tsatsaronis Central banks have always recognised the importance of financial stability for overall macroeconomic performance‚ but questions related to the health of the financial system have traditionally taken a back seat to those more directly linked to the process of inflation and growth. In recent years‚ however‚ financial stability has gained greater prominence on central bankers’ agenda. Monitoring the performance
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67 vol. 2‚ 2012 TARGETING OF KEY INTEREST RATE AS A SOURCE OF CRISIS YANA SOKOLOVA St. Petersburg State University‚ Faculty of Economics‚ Russia Abstract In response to the world economic crisis of 2008 the authorities of many countries have launched policies of interest rate reduction through large-scale asset purchases on the open key rate targeting. The author explains how changes of the federal funds rate increased bank interest rate risk and provoked the recession of 2007-2009
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CHAPTER 14 INTEREST RATE AND CURRENCY SWAPS SUGGESTED ANSWERS AND SOLUTIONS TO END-OF-CHAPTER QUESTIONS AND PROBLEMS QUESTIONS 1. Describe the difference between a swap broker and a swap dealer. Answer: A swap broker arranges a swap between two counterparties for a fee without taking a risk position in the swap. A swap dealer is a market maker of swaps and assumes a risk position in matching opposite sides of a swap and in assuring that each counterparty fulfills its contractual obligation
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railway official told AFP.The passenger train was travelling to Bangalore‚ the capital of Karnataka state‚ when it rammed into the goods train at Penneconda station in the neighbouring state of Andhra Pradesh.“At least 14 people‚ including one child and two women‚ died when three coaches of Hampi Express overturned following a collision with a goods train‚” G.K. Jalan‚ the railways’ regional public relations officer‚ told AFP.He added that 30 people had been injured.The accident occurred before dawn‚ according
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Zizek on Ideology and the Relationship Between Ideology and “The Real” ` CMNS 410 Professor Rick Gruneau December 13‚ 2011 Zizek on Ideology and the Relationship Between Ideology and “The Real” Slavoj Zizek is one of the leading theorists on ideology since the 1990’s and his conceptions of the real versus the symbolic versus the imagined are of particular importance when dissecting the question ‘what is ideology?’ Zizek’s critique of ideology and attempt to unpack it’s inner workings is fascinating
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Running head: THE RELATIONSHIP BETWEEN HOMICIDE RATES AND GUN OWNERSHIP 1 The Relationship between Homicide Rates and Gun Ownership JingYu Xiong (ALEX) ELS The relationship between homicide rates and gun ownership 2 Abstract The purpose of this paper is to find out the relationship between homicide rates and gun ownership. This paper uses
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Major Determinants of Interest Rates Inflation Inflation is a factor that decisively affects the nature or outcome of interest rates. “Inflation is an increase in prices of goods and services over time”(Financial Institutions‚ Instruments and Markets‚ 2012). Inflation is the natural byproduct of a robust‚ growing economy. No inflation‚ or deflation (the lowering of prices)‚ is actually a much worse economic indicator. Also‚ in a healthy economy‚ wages rise at the same rate as prices. A standard
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Bank of Canada and Interest Rates Bank of Canada Will Raise Interest Rates The Bank of Canada has indicated that it has concerns over inflation being too low. (Parkinson). However‚ inflation has been rising and the Canadian economy has strengthened over the last several months. Keeping interest rates too low over a long period of time may have a tendency to over-inflate the economy and create asset bubbles while also creating pockets of greater debt‚ not dissimilar to those that contributed to
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Chapter 5 : Interet rates Page161 Interest rate quotes and adjustments 5-1. Your bank is offering you an account that will pay 20% interest in total for a two-year deposit. Determine the equivalent discount rate for a period length of a. Six months. b. One year. c. One month. a. Since 6 months is [pic] of 2 years‚ using our rule [pic] So the equivalent 6 month rate is 4.66%. b. Since one year is half of 2 years [pic] So the equivalent 1 year rate is 9.54%. c. Since
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