5.8 a. If the market interest rate (the required rate of return that investors demand) unexpectedly increases,

Question:

5.8

a. If the market interest rate (the required rate of return that investors demand)

unexpectedly increases, what effect would you expect this increase to have on the prices of long-term bonds? Why?

b. What would be the effect of the rise in the interest rate on the general level of stock prices? Why?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Answer rating: 100% (QA)

Answered By

Priotosh Bhattacharjee

I myself am an IT professional who has worked in large industries and corporate sectors practicing the knowledge I have gained through work and process methodologies from the certifications I have. I have my own set-methodologies of teaching certification courses which is goal specific and has a focus on industrial exposure. I successfully conduct industry-oriented training which is much more vast than the certification courses. I conduct corporate training as well as self-designed in house training. Apart from my mainstream profession, I had a deep interest in health and fitness, which I have been following up for more than a decade. I have developed a group in my society and work on helping and guiding people to achieve their fitness goals to a certain extent. I practice on the concepts of functional medicine and have been quite successful by implementing it. I also counsel people on psychological aspects and also act as a one-on-one mentor for developing goals, how to achieve them. I work on studying, analyzing, and providing solutions on people's complex problems and deriving an optimum solution, that could otherwise lead to severe psychological disorders like depression, substance abuse, personality disorders. I have also counseled in a few trauma-related disorders. I do have an inclination on writing as I feel that I could reach people far beyond my reach, thus I started writing articles, blogs and am also an active member on different forums. I also am a Subject matter expert in many areas like maths, computer hardware, networking, IT, project management, and some more. Thereafter, I have started tutoring students on subjects relating to my above expertise, where I translate these real-time experiences into custom-fit courses and regular certification courses which very much helped them to achieve success in their lives.

0.00 0 Reviews 10+ Question Solved

Related Book For book-img-for-question