Explain relationship between interest rate and bond price, Financial Accounting

1. Would export businesses prefer a rising or declining dollar? Would it be the same for a European tourist on a budget and visiting the Grand Canyon? Explain your answer.

2. What are 4 ways that the FED can use to create money? What are the most powerful one and what method the FED to create a gradual easing of the money supply either created or destroyed most often uses?

3. What is the meaning of the following: a stock option price, strike price and what are a put and a call?What is the advantage or disadvantage of purchasing stock options over stocks? What function do Mutual Funds play with Stock Market investments?

4. What is the difference between the discount rate, prime rate and the subprime rates of interest? Which interest rate in particular created the 2008 recession? Explain how that happened.

5. What is the difference between the FED targeting the interest rate vs. inflation and which one is Bernanke using today? Name a few countries that use this method today.

6. Give a brief history of how banking evolved into a sophisticated operation. Begin first with the Goldsmith and sum up with the Banking system that we experience today.

7. During the 1980 period, what did the FED Chairman Paul Volcker do to reduce double digit inflation of the 1970's? What was the name of the person and or the economic school's approach that Volcker used?

8. What is the relationship between the interest rate and bond prices? Is there any difference between T-Bills vs. Corporate bonds in reaching your assessment? When the stock market falls, where do you suppose that most investor place their money and why?

9. How does the FED use the bond market to create and destroy money? Which method do developed countries employ to reduce the chance of experiencing inflation? What about Banana Republicans and inflation, do they have this means available to them?

Posted Date: 3/22/2013 2:04:26 AM | Location : United States







Related Discussions:- Explain relationship between interest rate and bond price, Assignment Help, Ask Question on Explain relationship between interest rate and bond price, Get Answer, Expert's Help, Explain relationship between interest rate and bond price Discussions

Write discussion on Explain relationship between interest rate and bond price
Your posts are moderated
Related Questions
1.Which of the following is true? A. Land is depreciated using the straight line depreciation method B. Land is amortized using the declining balance method C. Land is depleted usi


A company purchased 16 million shares (representing an 80% controlling interest) in another company on 1 July 2010. The terms of the purchase were as follows:    1 share in

Prepare a statement of revenues - deferral method: Wise Owls, an NFPO, began operations at the beginning of 20X1 to provide free tutoring and homework assistance, as well as a

Peter has worked for five years as an assistant accountant for a large garage and vehicle repair workshop. In the past two weeks he has noticed that one of the managers, Simon, ha

1. You can buy any quantity of cooking oil at $5 per litre and any quantity of flour at $2 per kilo. You have allocated $20 to spend on cooking oil and flour.    (a) If you choo


1. Lease vs. Buy Trasky Company is trying to decide whether it should purchase or lease a new automated machine to be used in the production of a new product. If purchased, the


Jaedan Industries has the following account balances as of December 31, 2010.  The firm's dividend payout ratio is 25% and the tax rate is 34%.  The firm's stock price on December