Considering the Market for Loanable Funds, explain what the following statement means: “Bonds should be issued only if the potential increase in interest rates is attributed to a strong demand for loanable funds RATHER than the FED’s reduction in the supply of loanable funds.”

A 151.

1. How would you define corporatebonds? Explain in your own wordswhat Bonds issued at Par, at aDiscount, and at a Premium are.2. How would you explain thedifference between bank loans andissuing corporate bonds? In youropinion, which of the fundingmethods is more attractive to acompany?

please explain

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D3) Finance Use covered interest rate parity (CIP) to show that a fixed exchange rate and free capital flows imply that a central bank cannot set the interest rate independently from the interest rate set by the reference currency's central bank.

1. Why do short-term debt securities issued by private companies generally offer higher yields than treasury bills issued by central governments?

Regarding the following statements about credit fixed income, identify who is correct (select all that apply):     a. Meeyeon: "Credit spreads tighten when the economy is strong, and there is a continued positive outlook."   b. Andrew: "Subordinated debentures are riskier for investors than senior debt." c. Greg: "The G-spread only measures the credit spread between a bond and a government curve over one point of time." d. Yuting: "Investment-grade credit never defaults."   (only a and b is incorrect)