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Q: Suppose interest rates on treasury bonds rose from 5 to 9 percent as a result of higher interest rates in Europe what effect would this have on the price of an average company's common stock?
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When interest rates are high the average consumer will?

buy less


What were the average interest rates offered by the Federal Land Bank from 1935 through 1940?

The prevailing average interest rate offered by the FLB (through the FCA) between 1935 and 1940 was 3.5%.


What is the Average penalty interest rate for cardholders who miss a payment?

25 percent


Daisy save 40 dollars per week and the bank's rate of interest is 8.5 percent per annum. What is that means 'interest is calculated on the average amount held in the account during the year'?

It means that Daisy save 2080 $ in a year and interest is 8.5% anually(a year). Interest is calculated as : 14.73 $ (2080 $ * 8.5 * 1 / 100 * 12 = 17680 / 1200) and interest is calculated on an average daily basis.


What are the determinants of market interest rates?

rd - Quoted or nominal rate of interest on a given security. there are many different securities, hence many different quoted interest rates.r* - real risk-free rate of interest, which represents the rate that would exist on a riskless security if zero inflation were expected.IP - Inflation premium is equal to the average expected inflation rate over the life of the security. The expected future inflation rate is not necessarily equal to the current inflation rate, so IP is not necessarily equal to current inflation.rRF - r* + IP and it is the quoted risk-free rate of interest on a security such as U.S. Treasury bill, which is very liquid and also free of most risks.DRP - default risk premium reflects the possibility that the issuer will not pay interest or principal at the stated time and in the stated amount. DRP rises as the riskiness of issuers increases.LP - Liquidity premium that is charged by lenders to reflect the fact that some securities can't be converted to cash on short notice at "reasonable" price. LP is very low for Treasury securities and for securities issued by large strong firms, but it is relatively high on securities issued by small firms.MRP - Maturity risk premium is charged by lenders to reflect the risk of price declines.

Related questions

What are the average treasury rates for this month?

Treasury rates are very low at the moment. As a matter of fact they are at historical lows. For a 5 year treasury bond the interest rate is at 1.95%


What is the risk free rate for 2005?

The average U.S. risk-free interest rate for the fiscal year-ending of 2005 was 2.94% p.a. (for 4-week U.S. treasury bills). Data calculated from the U.S. Department of the Treasury website.


What is the difference between net interest margin and net spread?

net interest margin=(Income interest-Expense interest)/average earning assets net spread=Income interest/average earning assets - Expense interest/average deposits and other funds


What is the average interest rate on a motorcycle loan?

The average interest rate on a motorcycle loan is 100000


What is the weekly average 1-year constant maturity Treasury yield?

.14


What was the average savings interest rate 1993?

The average interest rate on savings accounts is 3.5 to 4%


What is the average savings interest rate 2008-2009?

The average savings interest rate in banks is 3.5 to 4%


What is the average interest rate?

As of July 2014, the national average interest rate is 5.159. However, this will change as months go by. The interest rate changes often.


What is the average interest rate for an equity loan?

The average interest rate for home equity loans is constantly changing. As of June, 2013 the average interest rate was 5.11% for a line of credit and 6.15% for a loan.


What are domestic interest margins?

It net interest income as a percentage of average interest-earning assets


What is an average interest rate for a pnc mortgage?

The average pnc mortgage interest rate is around 4.64 to 4.85%. Your credit cards can have a bearing on the interest rate if the qualify for the program.


What is the average starting salary for a surgical tech?

The average anual surgical tech is about $36,742 to$44,625 us curency every year. there are many companys that will offer more or less than these ammounts but this was the average as of last year.