Question
Using the Fisher Equation, what variables drive the Risk-Free Rates (Rf) (Nominal Interest Rates on U.S. Treasure Securities by Maturity) up & down, shofts the
Using the Fisher Equation, what variables drive the Risk-Free Rates (Rf) (Nominal Interest Rates on U.S. Treasure Securities by Maturity) up & down, shofts the yield-curve up & down & flattens & inverts it?
Show the equation & graphical representation for a Normal (upward sloping), Flat, & Inverted Curve. What are the three Yield Curve Theories?
What impact do movements & shifts in the Yield Curve have on asset prices?
How does the Federal Reserve influence interest rates? What policy tool do they use to move interest rates? What is the objective of buying & selling bonds? If the Fed buys & sells bonds, what is the impact on bond prices? What is the impact on interest rates (Yield to maturity)? Does the Fed control & influence directly shorty term (ST) or long term (LT) interest rates? Or both?
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