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1 . If the yield curve is flat at 2 % and then rates rise in parallel ( each maturity by the same amount )
If the yield curve is flat at and then rates rise in parallel each maturity by the same amount by bpswhich discount factor from years will be affected the most? Why? What does a positive yield curve suggest about rates in the future relative to today? What does a flat yield curve suggest? What does an inverted curve suggest? Setup a simple spreadsheet for a bond with annual payments of Calculate a price for the bond for the following:
A year maturity with a yield of
A year maturity with a yield of
A year maturity with a yield of Why might growth stocks benefit disproportionate from low rates?
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