Interet rates - Study guides, Class notes & Summaries

Why is a current account surplus equivalent to foreign investment? - A current account surplus leads to the net accumulation of foreign assets. Capital controls are most often aimed at slowing or eliminating movements of - foreign portfolio investment Suppose the Japanese interest rate is 1% while the interest rate in Britain is 3% interet rate parity predicts that relative to the Japanese Yen. - The British pound will depreciate by 2% Purchasing Power Parity (PPP) implies that...

Fin321 - Lecture 2 Part II (Markets; Interest Rates) Terms in this set (26) money market - A market involving short-term securities such as U.S Treasury Bills that bear low risk - there is a lower expected return in money markets but a higher probability of receiving that return - The lower the maturity, the lower the risk - The higher the maturity, the higher the risk savings account & money market accounts - Are comparable because both are low risk and have low expected return ...

Deep dive into embedded options of bonds with a number of examples including diagrams, charts, and calculations