1. Interest Rate History (LO2, CFA5) Based on the history of interest rates, what is the range of short-term rates that has occurred in the United States? The range of long-term rates? What is a typical value for each?
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- Based on the history of interest rates, what is the range of short-term rates that has occurred in the United States? The range of long-term rates? What is a typical value for each?What is expectations theory of the term structure of interest rates? Group of answer choices a. Long term interest is equal to average short-term interest rates. b. Average rates is the term of structure of interest rates. c. Short-term interest is equal to long-term interest rates. d. Long term interest is the sum of all short-term interest rates.The nominal interest rate is adjusted based on _______ from the real interest rate. A. government controls B. inflation C. income growth D. exchange rate movements
- 1)What is '''effective annual interest rate"? 2) Explain it by numerical examplesWhat current rate environment is the US currently in by historical standards? (LOW, HIGH, AVERAGE) What are the expectations for rates in the US over the next year? How will this impact businesses borrowing money (debt)? What do you observe in day-to-day life regarding current inflation?Find the interest rate implied by the following combinations of present and future values. present values $330, Years 10, future value 591, interest rate? present values $148, Years 3, future value 192, interest rate? present values $230, Years 6, future value 230, interest rate?
- Use factors (from the tables) or a spreadsheet to determine the interest rate per period from the following equation: 0 = −40,000 + 8000(P/A,i*,8) + 8000(P/F,i*,10)Explanation it correctly Q)Which of the following interest rates is usually the highest? Multiple Choice 30-year mortgage rate 20-year Treasury bond rate consumer credit-card rate prime rate of banks2 Given a set of present value tables, an annual interest rate, the dollar amount of equal payments made, and the number of semiannual payments, what other information is necessary to calculate the present value of the series of payments? A. The future value of the annuity. B. The timing of the payments (whether they are at the beginning or end of the period). C. The rate of inflation. D. No other information is required.
- (Inflation and Interest rates) What would you expect the nominal rate of interest to be if the real rate is 4.1 percent and the expected inflation rate is 6.6 percent ? The nominal rate of interest would be ____ % (Round to two decimal places.)Briefly explain how each of the factors below influence interest rates: A. Inflation B. Term to maturity C. Exchange rateGiven the following, construct a choice table for interest rates from 0% to 100%. Year X Y 0 −$10 −$20 1 15 28