How does risk affect interest rates?
Question:
How does risk affect interest rates?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (QA)
Risk directly influences interest rates in financial markets Generally the higher the perceived risk associated with a particular investment or borrow...View the full answer
Answered By
Joseph Mwaura
I have been teaching college students in various subjects for 9 years now. Besides, I have been tutoring online with several tutoring companies from 2010 to date. The 9 years of experience as a tutor has enabled me to develop multiple tutoring skills and see thousands of students excel in their education and in life after school which gives me much pleasure. I have assisted students in essay writing and in doing academic research and this has helped me be well versed with the various writing styles such as APA, MLA, Chicago/ Turabian, Harvard. I am always ready to handle work at any hour and in any way as students specify. In my tutoring journey, excellence has always been my guiding standard.
4.00+
1+ Reviews
10+ Question Solved
Related Book For
Fundamentals Of Financial Management
ISBN: 9780357517574
16th Edition
Authors: Eugene F. Brigham, Joel F. Houston
Question Posted:
Students also viewed these Business questions
-
Suncor Energy Inc. is a major developer in the oil sands of Northern Alberta. Note 17 to Suncor's financial statements (Exhibit 10-15) describes the company's long-term debt as at December 31, 2009....
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Case Background Ah Lee, a financial manager at a US based mid-sized manufacturing firm, has been caught off-guard before. To earn the most on excess cash, Ah Lee once bought five-year coupon Treasury...
-
List all types of bonding present in the compound CaCO3. List all types of bonding present in the compound CaCO3. I. ionic bond II. polar covalent bond III. nonpolar covalent bond A. I only B. II...
-
After graduation, Adrian moved across the country to Brownville and bought a small house for $208,000. Bill moved to Columbus and bought a house for $195,000. Four years later, they both sold their...
-
Edmund Enterprises recently made a large investment to upgrade its technology. While these improvements won't have much of an impact on performance in the short run, they are expected to reduce...
-
You are an engineering manager and have been asked to work with the Public Relations Department in writing a press release about a new product that did not turn out quite as well as promised in...
-
ESPN held its Action Sports and Music Awards ceremony in April, at which celebrities in the fields of extreme sports and popular music such as rap and heavy metal converged. Well-known musicians Ben...
-
1 Explain what leadership is, when leaders are effective and ineffective, and the sources of power that enable managers to be effective leaders. LO10-2 Identify the traits that show the strongest...
-
If inflation during the last 12 months was 2% and the interest rate during that period was 5%, what was the real rate of interest? If inflation is expected to average 4% during the next year and the...
-
How does the price of capital tend to change during a boom? During a recession?
-
What is a clastic sedimentary rock?
-
Malik works as an analyst in the mergers and acquisition department at Silverman Bachs. The company is assessing the risk of buying a competitor's company but finds a significant amount of risk,...
-
Assume Ellina earns a 4 percent after-tax rate of return and that she owes a friend $1,500. Would she prefer to pay the friend $1,500 today or $1,725 in four years?
-
Why the companies need to consider their social cost and social benefits, explain.
-
Design a business model template as basis for a professional business plan Explain the connection between a business plan and business model. Explain the importance of a business model in a business...
-
Identify the graph of the function. 5) f(x)-(x+3)3-2 A) -6 -6 A) -2,-1, 1,4 B) B) -1, 1,2,4 D) -6 Use a graphing calculator to approximate all real solutions of the equation f(x)=0. 6)...
-
1. What is a pretermitted heir? 2. Is a child entitled to inherit something? 3. How can courts tell if a child is left out by accident?
-
Hardin Services Co. experienced the following events in 2016: 1. Provided services on account. 2. Collected cash for accounts receivable. 3. Attempted to collect an account and, when unsuccessful,...
-
What is the present value of a security that will pay $5,000 in 20 years if securities of equal risk pay 7% annually?
-
What is the present value of a security that will pay $5,000 in 20 years if securities of equal risk pay 7% annually?
-
If you deposit money today in an account that pays 6.5% annual interest, how long will it take to double your money?
-
Construct a network schedule for this project and prepare a memo that answers the following questions: 1. When is the project estimated to be completed? How long will the project take? 2. What is the...
-
What professional variables have the highest priority for you now? C do you think you can change these variables in the pr next five to you ?
-
What four situations indicate unconscious bias being exhibited in the workplace?
Study smarter with the SolutionInn App