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What are the factors that influence the bond interest rates or prices?
Nokukhanya
1, bond price move inversely to interest rate 2. a decrease in yield results in a larger change in price than increase in yield 3. change in yield, long term bond price changed more than the short term bond 4. bond price increases with maturity at a diminishing rate 5. for a given change in yield, bond price with low coupon rate will change more than the bond price with high coupon rate.
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∙ 15y ago
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What economic factors that influence the personal financial planning?
Consumer Prices; Consumer Spending; Interest Rates; Unemployment; DOW JONES Average index changes, etc
What are the definition of economic influence?
Economic influence is the effect that an event, policy, or market trend will have on economic factors. These economic factors include interest rates, consumer confidence, and the stock market. For example, a bank that declares bankruptcy will affect consumer confidence and stock prices related to that bank.
How do falling interest rates and falling prices influence total demand in the economy?
When interest rates fall, money costs less to borrow. If prices fall, goods are easier to purchase. If consumer confidence is good, people and businesses may be tempted to borrow to buy goods at low prices. Low prices and low interest rates are often the result of poor consumer confidence as business need to lower prices to stimulate demand.
Bond prices and interest rates are directly or positively related?
The price is inversely related to yields (interest rates). This means as rates rise, prices fall.
What is different about interest rates or price credit from other prices in the economy?
what is different about interest rates, or price of credit, from other prices in the economy
What is influenced by the manipulation of reserve-level rates?
Thus, the Fed can influence such factors as economic activities, the money supply, interest rates, credit availability, and prices.
What economic factors that influence the personal financial planning?
Consumer Prices; Consumer Spending; Interest Rates; Unemployment; DOW JONES Average index changes, etc
What factors influence reading rates?
Factors that can influence reading rates include individual reading ability, reading environment, level of interest in the material being read, distractions, and reading goals. Additionally, the complexity and difficulty of the text can also impact reading rates.
What are the definition of economic influence?
Economic influence is the effect that an event, policy, or market trend will have on economic factors. These economic factors include interest rates, consumer confidence, and the stock market. For example, a bank that declares bankruptcy will affect consumer confidence and stock prices related to that bank.
How do falling interest rates and falling prices influence total demand in the economy?
When interest rates fall, money costs less to borrow. If prices fall, goods are easier to purchase. If consumer confidence is good, people and businesses may be tempted to borrow to buy goods at low prices. Low prices and low interest rates are often the result of poor consumer confidence as business need to lower prices to stimulate demand.
Are Bond prices and interest rates are directly or positively related?
The price is inversely related to yields (interest rates). This means as rates rise, prices fall.
Bond prices and interest rates are directly or positively related?
The price is inversely related to yields (interest rates). This means as rates rise, prices fall.
What is different about interest rates or price credit from other prices in the economy?
what is different about interest rates, or price of credit, from other prices in the economy
What prices fall as interest rates rise?
A bond
What are three economic factors that influence what people buy?
Answer The three economic factors that influence people to buy are as follows. 1.Advertising 2. Good pricing 3. Credit cards that offer low interest rates.
Why might rising interest rates depress stock prices?
rising interest rates usually means the economy has less
Why would high commodity prices and low interest rates help to maintain share prices?
There are many reasons high commodity prices and low interest rates help to maintain share prices. This keeps the market competitive.
