Ba 3303 exam 2 solved - Study guides, Class notes & Summaries
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BA 3303 Exam 2 Solved 100% Correct
- Exam (elaborations) • 7 pages • 2023
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Interest rates - ANSWER--The cost of borrowing money stated as a percentage of the loan 
-A measure of what an investor can expect on a debt related investment. 
 
Basis point - ANSWER-Common term for a unit of interest rates in finance 
1 basis point = .01% 
100 basis points = 1.00% 
 
Nominal interest rate - ANSWER-Interest rate that is observed in the marketplace 
 
Risk free rate - ANSWER-Interest rate on a debt instrument with no default, maturity, or liquidity risks (Treasury securities ar...
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