How might the market segmentation theory help to explain why short-term rates on government securities increase when bank loan demand becomes high?
Answer to relevant QuestionsUnder what circumstances would the yield spread on different classes of debt obligations tend to be largest? Why does a bond price change when interest rates change? What is the approximate yield to maturity of a 14 percent coupon rate, $1,000 par value bond priced at $1,160 if it has 16 years to maturity? Given a 15-year bond that sold for $1,000 with a 9 percent coupon rate, what would be the price of the bond if interest rates in the marketplace on similar bonds are now 12 percent? Interest is paid semiannually. Assume a ...For what reasons do firms issue warrants?
Post your question