What happens, when greater the interest rate other things being equal?

Q: How would an increase in the interest rate effect the present value of an annuity problem (all other…

A: Present value of the annuity The amount of money that would be required today to support a series of…

Q: . What is the term structure of interest rates?

A: Answer: The term interest rate structure is the pattern of necessary returns, also referred to as…

Q: Increasing interest expense will have what effect on EBIT?

A: EBIT stands for Earnings before Interest and Tax, the amount earned by the company from the…

Q: What is marginal rate (for debt)?

A: Marginal rate of debt is the rate of interest expected by the investors on their debt instruments…

Q: What is a syndicated loan? What are its advantages anddisadvantages?

A: Syndicated loan: It is moreover called as a syndicated bank facility, is loaning given by a bunch of…

Q: What the different between rate interest و interest value ؟؟!!

A: The rate interest indicates the cost of borrowing or earnings on deposit in the percentage of the…

Q: How can the Equivalence calculations be done at a varying interest rate?

A: Interest Rate - The amount of interest due each period expressed as a percentage of the amount lent,…

Q: the interest is nominal is that still good for this answer?

A: Formula used is: (1+Real rate) *(1+Inflation rate)= (1+ Nominal rate)

Q: What is interest coverage ratio?

A: The interest coverage ratio is the ratio which shows the ability of the company to pay the interest…

Q: how does interest rate risk relates to the washinton Mutual Case

A: Interest rate risk is the risk of an investment's value changing due to changes in interest rates.…

Q: Can you explain what is Principles of Interest Rate Structure? and how do you do it

A: We assume the question refers to the Term Structure of Interest Rates.  Term structure describes the…

Q: What is the difference between the stated interest rate and the market interest rate?

A: Bonds PayableBonds payable are referred to long-term debts of the business, issued to various…

Q: How does interest rate risk differ from reinvestment rate risk? Why is the difference important?

A: Interest Rate Risk and Re investment Risk Interest rate risk results from the possibility that…

Q: What is meant by the risk structure of interest rates?

A: The term "risk structure of interest rates," often referred to as the "yield curve," refers to the…

Q: Explain Interest Rates and Inflation Expectation?

A: An interest rate is the measure of cash a bank or creditor charges for right of entry to cash. The…

Q: Illustrate the very important relationships between changes in interest rates and varying rates of…

A: It illustrates an inverse relationship amongst the change in the interest rate and the varying…

Q: What is going interest rate?

A: An interest rate is the rate which is applicable on loan and the borrower has to pay the interest…

Q: Explain the addition to the interest rate, HELOC borrowers consider the issues?

A: Home buyers mostly take loans to buy the home and they will pay the debt in equated installments.…

Q: How do you accrue and calculate interest

A: interest calculation = principle amount * rate of interest    accrued interest is interest…

Q: what do you mean by proceeds in this question? is it only the interest calculated or the matured…

A: In the question, it was asked to calculate " Proceeds from redemption" Redemption means company…

Q: What does the annuity factor indicate?

A: Annuity factor It indicates the discounted factor’s sum for all the n maturities when all n…

Q: a. Explain the expectations theory of the term structure of interest rates. b. What do the shapes of…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: w do yo

A: The effective interest rate is the actual interest rate earned or paid on an investment or loan over…

Q: What is the difference between Direct and Indirect Financing?

A: Difference between direct financing and indirect financing are as follows

Q: What is FX rate?

A: The exchange rate is that rate in which price of the country currency is measured in the term of the…

Q: How can we determine the Net Present-Worth Amounts at Varying Interest Rates?

A: Answer: Net present worth is an estimation method applied to various time intervals when cash flows…

Q: e. What is an annuity due? How does this differ from an ordinary annuity

A: Annuity refers to a series of equal payments made at the same interval.

Q: Illustrate with examples , that Interest rate is equivalent to the savings rate from the deposits?

A: Interest received It is the amount that is received to a person for the investment made. A rate at…

Q: What does the term structure of interest rates indicate?

A: The term structure of interest rates, also known as the yield curve, is a graphical representation…

Q: What effect do interest rates have on the calculation of future and present value? How does the…

A: The time value of money is a concept that is based on the idea that a given amount of money is worth…