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What should an Investor do when interest rate is expected to fall?
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Bonds usually sell at a premium when?
when interest rates in the general market fall. This makes the interest rate on the bond relatively more attractive.
What is a clue as to whether capital has increased or decreased?
When capital increases, interest rates fall.
What is the pattern of mortgage interest rates?
Right now interest rates are falling to all time lows. They will eventually go back up, but for right now they are low and continuing to fall.
What is the definition of fixed interest rates?
An interest rate that remains constant throughout the agreed term. If changes in the goverment base rate occur where commercial rates rise or fall you wont be affected.
What should you do if interest rates rise?
This is a pretty open ended question. I'll answer it from the perspective of investing. Rising interest rates directly impact bond performance. Generally speaking, if interest rates rise the value of bond investments fall. Not all bond investments have the same sensitivity to changes in interest rates, but most have at least some. Longer bonds tend to be more sensitive to interest rate changes than shorter bonds, and credit sensitive bonds like corporate bonds tend to be less sensitive to changes in interest rates. As far as actions to take when interest rates rise goes, it really depends on the investors situation. If an investor isn't comfortable the level of volatility that they are experiencing, then a change in the strategy may be needed. Unfortunately, prices have already fallen, so having to change strategy after a period of rising interest rates goes against the strategy of buying low and selling high, but interest rates could keep rising so it's important to consider your risk tolerance going forward. Higher interest rates can also have an effect on stock prices. As the interest rates rise, the cost of borrowing for companies goes up and eats into earnings. Sometimes those higher costs can be passed along to customers, but often times they can't. Rising interest rates often cause pullbacks of 10-20% and can even cause minor recessions. The effect on stocks could be exasperated by the extremely low levels of interest rates currently in the market.
The quantity of product X supplied can be expected to rise with a fall in what?
The quantity of product X supplied can be expected to rise with a fall in:
What is the relationship between realestate and interest rate?
realestate price is positive related to stock price. If stock price increase, then interest rate decreases. it's negative realtionship
How is the current demand for a good related to its future prices?
If the price is expected to drop, current demand will fall.
If two bonds have the same maturity the same yield to maturity and the same level of risk the bonds should they sell for the same price regardless of the bond's coupon rate?
if two bonds offer the same duration and yield, then an investor should look at their levels of convexity. if one bond has greater convexity, it is less affected by interest rate changes. also, bonds with higher convexity will have higher price than bonds with lower convexity regardless whether interest rates rise or fall. Ergo, investors will have to pay more with greater convexity due to the bond's lesser sensitivity to interest rate changes.
Why is it guys fall out of love sometimes?
They don't fall out of love. They just lose interest.
If there is an excess supply of money?
deposit more into interest-bearing accounts, and the interest rate will fall.
What prices fall as interest rates rise?
A bond
When is hurricane sandy expected to make land fall?
October 30, 2012
How a company determines the price of its share?
If a company is publicly traded, the company itself does NOT decide the price of its shares, the market does. A share of stock trades for what an investor is willing to pay for it. Thus, if many investors are interested in buying a stock, its share price will rise. If there isn't much interest, its price will fall. Basic supply and demand.
What climate is expected in the African rainforests?
wet damp land with alot of rain fall.
Can meditation control hair fall?
For sure it will help you to solve any hair fall problems, probably in a way you would have never expected.
When was If I Should Fall created?
If I Should Fall was created in 2011.
