'Asset demand' presentation slideshows

Understanding Interest Rates

Understanding Interest Rates. Lottery Options. Option 1: you get a check today for $10,000 and one a year from now for $10,000. Option 2: pays you $2,000 today and each of the next 29 years. Lottery Options (cont).

2.35k views • 186 slides

Chapter 6. Bonds, bond prices and interest rates

Chapter 6. Bonds, bond prices and interest rates. Bond prices and yields Bond market equilibrium Bond risks. Bonds: 4 types. zero coupon bonds e.g. Tbills fixed payment loans e.g. mortgages, car loans coupon bonds e.g. Tnotes, Tbonds consols . Zero coupon bonds. discount bonds

770 views • 57 slides

Chapter Preview

Chapter Preview. In the early 1950s, short-term Treasury bills were yielding about 1%. By 1981, the yields rose to 15% and higher. But then dropped back to 1% by 2003. In 2007, rates jumped up to 5%, only to fall back to near zero in 2008. What causes these changes?. Chapter Preview.

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Bell Ringer

451 views • 39 slides