The yield curve indicates that the two-year interest rate will be a function of what variables? Include in your answer an explanation of how changes in these variables will affect the two-year interest rate
What will be an ideal response?
The two-year rate will be a function of the current one-year rate and the future expected one-year rate. In fact, it will be approximately equal to the average of these two rates. So, an increase in either rate will cause the two-year rate to rise.
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If a corporate bond with face value of $8,000 has an interest rate of 4 percent paid once a year for a term of 30 years, what is the size of the coupon payment?
A) $320 B) $2,000 C) $8,000 D) $9,600
International Reserve assets are comprised of gold, foreign exchange, and IMF special drawing rights
Indicate whether the statement is true or false
Accounting profit is equal to
A) total revenue minus dividends and interest. B) dividends paid. C) total revenue minus implicit costs. D) total revenue minus explicit costs.
If the legal minimum wage rate were set at $15/hour,
A. employment would decline substantially. B. employment would decline slightly. C. employment would not be affected. D. employment would rise slightly.