Below is a chart of interest rates prevailing as of the end of October 2021. This data
Question:
Below is a chart of interest rates prevailing as of the end of October 2021. This data was found at the Federal Reserve (fred.stlouisfred.org). The graph shows rates for the five year period beginning end of October 2017 to end of October 2021 as follows: Mortgages 30 year average, 3.09% - red line Corporate 10 year bonds high quality, 2.35% - blue line U.S. Treasuries 10 year bonds, 1.64% - green line Use your magnifier function to make the chart larger, if necessary. "Google" how to magnify your screen. There are several ways to accomplish magnification. undefined
Question options:
1) It shows that these three types of debt investments move in different directions because investors of corporate debt have no relationship to investors of U.S. Treasuries. Overall, interest rates are higher in 2021 than in 2018.
2) It shows that the three types of debt investments moved (generally) in the same direction over the five year period. Overall, interest rates are lower in 2021 than in 2018.
Expert Answer:
1 2 The interest rate is the amount a lender charges a borrower and is a percentage of the principal ... View the full answer
