Illustrate the very important relationships between changes in interest rates and varying rates of prepayment?

What does the Times Interest Earn ratio state? Provide an example

Can the actual real rate of interest be negative? When ? Can the expected real rate be negative?

Summarize the varying effective interest rates per payment period under compounding frequencies?

Distinguish between the initial rate of interest and the expected yield on an ARM. What is the general relationship between the two? How do they generally reflect ARM terms?

When the quantity of a financial security supplied or demanded changes at every given interest rate in response to a change in a factor, this causes a shift in the supply or demand curve true or false ?

INTEREST RATE RISK  In the context of the repricing gap model, what is the spread effect? How does it affect the change in net interest income?

Explain Interest Rates and Risk?

Provide some idea of the effect of the sensitivity of security prices to changes in market interest rates?

What-if forecasting provides information regarding how much net interest income changes when interest rates are assumed to increase/decrease by various amounts.   Select one: True False