SlideShare une entreprise Scribd logo

Chapter 05_How Do Risk and Term Structure Affect Interest Rate?

•Télécharger en tant que PPT, PDF•
•
Rusman Mukhlis
Rusman Mukhlis
FormationÉconomie & financeBusiness
1  sur  67
Chapter 5 How Do The Risk and Term Structure Affect Interest Rates
Chapter Preview ,[object Object],[object Object]
Chapter Preview ,[object Object]
Chapter Preview ,[object Object]
Chapter Preview ,[object Object],[object Object],[object Object]
Risk Structure of Interest Rates ,[object Object],[object Object]
Risk Structure of Long Bonds in the U.S.
Risk Structure of Long Bonds in the U.S. ,[object Object],[object Object],[object Object]
Factors Affecting Risk Structure of Interest Rates ,[object Object],[object Object],[object Object],[object Object]
Default Risk Factor ,[object Object],[object Object]
Default Risk Factor (cont.) ,[object Object],[object Object]
Increase in Default Risk on Corporate Bonds
Analysis of Figure 5.2: Increase in Default on Corporate Bonds ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Default Risk Factor (cont.) ,[object Object],[object Object],[object Object]
Bond Ratings
Case: Enron and the Baa-Aaa spread ,[object Object],[object Object],[object Object]
Liquidity Factor ,[object Object],[object Object]
Decrease in Liquidity of Corporate Bonds Figure 5.2 Response to a Decrease in the Liquidity of Corporate Bonds
Analysis of Figure 5.1: Corporate Bond Becomes Less Liquid ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Liquidity Factor (cont.) ,[object Object]
Income Taxes Factor ,[object Object],[object Object],[object Object]
Income Taxes Factor ,[object Object],[object Object]
Income Taxes Factor ,[object Object],[object Object]
Tax Advantages of Municipal Bonds
Analysis of Figure 5.3: Tax Advantages of Municipal Bonds ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Case: Bush Tax Cut and Interest Rates ,[object Object],[object Object]
Term Structure of Interest Rates ,[object Object],[object Object]
The WSJ: Following the News ,[object Object],[object Object],[object Object]
Reading the Wall St. Journal Dynamic yield curve that can show the curve at any time in history http://stockcharts.com/charts/YieldCurve.html
Term Structure Facts to Be Explained ,[object Object],[object Object]
Interest Rates on Different Maturity Bonds Move Together
Term Structure Facts to Be Explained ,[object Object],[object Object],[object Object],[object Object]
Three Theories of Term Structure ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Expectations Theory ,[object Object],[object Object]
Expectations Theory ,[object Object],[object Object],[object Object]
Expectations Theory ,[object Object],[object Object]
Expectations Theory ,[object Object],[object Object],[object Object]
Expectations Theory ,[object Object],Since ( i 2 t ) 2 is extremely small, expected return is approximately 2( i 2 t )
Expectations Theory ,[object Object],[object Object],Solving for i 2 t (1)
Expectations Theory ,[object Object]
More generally for n -period bond… ,[object Object],(2)
More generally for n -period bond… ,[object Object],[object Object],[object Object],[object Object],[object Object]
Expectations Theory and Term Structure Facts ,[object Object],[object Object],[object Object],[object Object]
Expectations Theory and Term Structure Facts ,[object Object],[object Object],[object Object],[object Object]
Expectations Theory and Term Structure Facts ,[object Object],[object Object],[object Object]
Expectations Theory and Term Structure Facts ,[object Object],[object Object]
Market Segmentation Theory ,[object Object],[object Object]
Market Segmentation Theory ,[object Object],[object Object],[object Object]
Liquidity Premium Theory ,[object Object],[object Object]
Liquidity Premium Theory ,[object Object]
Liquidity Premium Theory ,[object Object],(3) ,[object Object]
Liquidity Premium Theory
Numerical Example ,[object Object],[object Object]
Numerical Example ,[object Object],[object Object],[object Object],[object Object]
Liquidity Premium Theory: Term Structure Facts ,[object Object],[object Object],[object Object]
Market Predictions of Future Short Rates
Evidence on the Term Structure ,[object Object],[object Object]
Case: Interpreting Yield Curves ,[object Object],[object Object]
Case: Interpreting Yield Curves, 1980–2008
Case: Interpreting Yield Curves ,[object Object],[object Object]
Case: Interpreting Yield Curves ,[object Object]
Mini-case: The Yield Curve as a Forecasting Tool ,[object Object],[object Object],[object Object]
The Practicing Manager: Forecasting Interest Rates with the Term Structure ,[object Object],Solve for forward rate, i e t+1 (4) Numerical example: i 1t = 5%, i 2t = 5.5%
Forecasting Interest Rates with the Term Structure ,[object Object],Using i e t+1 derived in (4), solve for i e t+2
Forecasting Interest Rates with the Term Structure ,[object Object],Liquidity Premium Theory: i nt - = same as pure expectations theory; replace i nt by i nt - in (5) to get adjusted forward-rate forecast (5) (6)
Forecasting Interest Rates with the Term Structure ,[object Object],[object Object],[object Object],[object Object],Loan rate must be > 8.2%
Chapter Summary ,[object Object],[object Object]

Recommandé

Chapter 03_What Do Interest Rates Mean and What Is Their Role in Valuation?
Chapter 03_What Do Interest Rates Mean and What Is Their Role in Valuation?Chapter 03_What Do Interest Rates Mean and What Is Their Role in Valuation?
Chapter 03_What Do Interest Rates Mean and What Is Their Role in Valuation?Rusman Mukhlis
 
Chapter 10_The Bond Market
Chapter 10_The Bond MarketChapter 10_The Bond Market
Chapter 10_The Bond MarketRusman Mukhlis
 
Chapter 06_ Are Financial Markets Efficient?
Chapter 06_ Are Financial Markets Efficient?Chapter 06_ Are Financial Markets Efficient?
Chapter 06_ Are Financial Markets Efficient?Rusman Mukhlis
 
Chapter 04_Why Do Interest Rate Change?
Chapter 04_Why Do Interest Rate Change?Chapter 04_Why Do Interest Rate Change?
Chapter 04_Why Do Interest Rate Change?Rusman Mukhlis
 
Chapter 02_Overview of the Financial System
Chapter 02_Overview of the Financial SystemChapter 02_Overview of the Financial System
Chapter 02_Overview of the Financial SystemRusman Mukhlis
 
Chapter 09_The Money Markets
Chapter 09_The Money MarketsChapter 09_The Money Markets
Chapter 09_The Money MarketsRusman Mukhlis
 
Financial Markets & Institutions
Financial Markets & InstitutionsFinancial Markets & Institutions
Financial Markets & InstitutionsHashim Khawaja
 
Why study Money, Banking and Finance
Why study Money, Banking and FinanceWhy study Money, Banking and Finance
Why study Money, Banking and FinanceSaeed ur Rehman Khattak
 

Recommandé

Chapter 03_What Do Interest Rates Mean and What Is Their Role in Valuation?
Chapter 03_What Do Interest Rates Mean and What Is Their Role in Valuation?Chapter 03_What Do Interest Rates Mean and What Is Their Role in Valuation?
Chapter 03_What Do Interest Rates Mean and What Is Their Role in Valuation?Rusman Mukhlis
 
Chapter 10_The Bond Market
Chapter 10_The Bond MarketChapter 10_The Bond Market
Chapter 10_The Bond MarketRusman Mukhlis
 
Chapter 06_ Are Financial Markets Efficient?
Chapter 06_ Are Financial Markets Efficient?Chapter 06_ Are Financial Markets Efficient?
Chapter 06_ Are Financial Markets Efficient?Rusman Mukhlis
 
Chapter 04_Why Do Interest Rate Change?
Chapter 04_Why Do Interest Rate Change?Chapter 04_Why Do Interest Rate Change?
Chapter 04_Why Do Interest Rate Change?Rusman Mukhlis
 
Chapter 02_Overview of the Financial System
Chapter 02_Overview of the Financial SystemChapter 02_Overview of the Financial System
Chapter 02_Overview of the Financial SystemRusman Mukhlis
 
Chapter 09_The Money Markets
Chapter 09_The Money MarketsChapter 09_The Money Markets
Chapter 09_The Money MarketsRusman Mukhlis
 
Financial Markets & Institutions
Financial Markets & InstitutionsFinancial Markets & Institutions
Financial Markets & InstitutionsHashim Khawaja
 
Why study Money, Banking and Finance
Why study Money, Banking and FinanceWhy study Money, Banking and Finance
Why study Money, Banking and FinanceSaeed ur Rehman Khattak
 
Mishkin ch1& ch2
Mishkin ch1& ch2Mishkin ch1& ch2
Mishkin ch1& ch2Zerin Tasnime
 
1 introduction to financial system.ppt
1 introduction to financial system.ppt1 introduction to financial system.ppt
1 introduction to financial system.pptImran Hussain
 
Mishkin fmi9ge ppt_c01
Mishkin fmi9ge ppt_c01Mishkin fmi9ge ppt_c01
Mishkin fmi9ge ppt_c01Dr. Muath Asmar
 
Bond markets
Bond marketsBond markets
Bond marketsHasnain Baber
 
International Financial Markets
International Financial MarketsInternational Financial Markets
International Financial MarketsDr. Hesniati S.E., M.M.
 
bond and its types
bond and its typesbond and its types
bond and its typesAtta Hussain Syed
 
An Overview of Financial System
An Overview of Financial SystemAn Overview of Financial System
An Overview of Financial SystemImran Nordin
 
Chapter 2 Financial Institutions, Financial Intermediaries and Asset Manageme...
Chapter 2 Financial Institutions, Financial Intermediaries and Asset Manageme...Chapter 2 Financial Institutions, Financial Intermediaries and Asset Manageme...
Chapter 2 Financial Institutions, Financial Intermediaries and Asset Manageme...Nardin A
 
Bond market ppt
Bond market pptBond market ppt
Bond market pptDr. Sonam Arora
 
Chapter 14_The International Financial System
Chapter 14_The International Financial SystemChapter 14_The International Financial System
Chapter 14_The International Financial SystemRusman Mukhlis
 
Financial market and institutions
Financial market and institutionsFinancial market and institutions
Financial market and institutionsHung Tran
 
the term structure & risk structure of interest rates
the term structure & risk structure of interest ratesthe term structure & risk structure of interest rates
the term structure & risk structure of interest rateskainlovely30
 
Lecture 1 financial institutions #
Lecture 1 financial institutions #Lecture 1 financial institutions #
Lecture 1 financial institutions #Latifa Ben Hamouda
 
Chapter 21_The Mutual Fund Industry
Chapter 21_The Mutual Fund IndustryChapter 21_The Mutual Fund Industry
Chapter 21_The Mutual Fund IndustryRusman Mukhlis
 
Chapter 11_The Stock Market
Chapter 11_The Stock MarketChapter 11_The Stock Market
Chapter 11_The Stock MarketRusman Mukhlis
 
Chapter 3 Depository Institutions: Activities and Characteristics
Chapter 3 Depository Institutions: Activities and CharacteristicsChapter 3 Depository Institutions: Activities and Characteristics
Chapter 3 Depository Institutions: Activities and CharacteristicsNardin A
 
Financial markets and their impact on economy
Financial markets and their impact on economyFinancial markets and their impact on economy
Financial markets and their impact on economyShivkumar Menon
 
Introduction to Financial Markets
Introduction to Financial MarketsIntroduction to Financial Markets
Introduction to Financial MarketsEastern New Mexico University
 
Chapter 08 Risk & Return
Chapter 08 Risk & ReturnChapter 08 Risk & Return
Chapter 08 Risk & ReturnAlamgir Alwani
 
chapter three interest rates in the financial system.pptx
chapter three interest rates in the financial system.pptxchapter three interest rates in the financial system.pptx
chapter three interest rates in the financial system.pptxEbsaAbdi
 
Chapter 07_Central Banking and the Conduct of Monetary Policy
Chapter 07_Central Banking and the Conduct of Monetary PolicyChapter 07_Central Banking and the Conduct of Monetary Policy
Chapter 07_Central Banking and the Conduct of Monetary PolicyRusman Mukhlis
 
Econ315 Money and Banking: Learning Unit #13: Term Structure of Interest Rates
Econ315 Money and Banking: Learning Unit #13: Term Structure of Interest RatesEcon315 Money and Banking: Learning Unit #13: Term Structure of Interest Rates
Econ315 Money and Banking: Learning Unit #13: Term Structure of Interest Ratessakanor
 

Contenu connexe

Tendances

1 introduction to financial system.ppt
1 introduction to financial system.ppt1 introduction to financial system.ppt
1 introduction to financial system.pptImran Hussain
 
An Overview of Financial System
An Overview of Financial SystemAn Overview of Financial System
An Overview of Financial SystemImran Nordin
 
Chapter 2 Financial Institutions, Financial Intermediaries and Asset Manageme...
Chapter 2 Financial Institutions, Financial Intermediaries and Asset Manageme...Chapter 2 Financial Institutions, Financial Intermediaries and Asset Manageme...
Chapter 2 Financial Institutions, Financial Intermediaries and Asset Manageme...Nardin A
 
Chapter 14_The International Financial System
Chapter 14_The International Financial SystemChapter 14_The International Financial System
Chapter 14_The International Financial SystemRusman Mukhlis
 
Financial market and institutions
Financial market and institutionsFinancial market and institutions
Financial market and institutionsHung Tran
 
the term structure & risk structure of interest rates
the term structure & risk structure of interest ratesthe term structure & risk structure of interest rates
the term structure & risk structure of interest rateskainlovely30
 
Lecture 1 financial institutions #
Lecture 1 financial institutions #Lecture 1 financial institutions #
Lecture 1 financial institutions #Latifa Ben Hamouda
 
Chapter 21_The Mutual Fund Industry
Chapter 21_The Mutual Fund IndustryChapter 21_The Mutual Fund Industry
Chapter 21_The Mutual Fund IndustryRusman Mukhlis
 
Chapter 11_The Stock Market
Chapter 11_The Stock MarketChapter 11_The Stock Market
Chapter 11_The Stock MarketRusman Mukhlis
 
Chapter 3 Depository Institutions: Activities and Characteristics
Chapter 3 Depository Institutions: Activities and CharacteristicsChapter 3 Depository Institutions: Activities and Characteristics
Chapter 3 Depository Institutions: Activities and CharacteristicsNardin A
 
Financial markets and their impact on economy
Financial markets and their impact on economyFinancial markets and their impact on economy
Financial markets and their impact on economyShivkumar Menon
 
Chapter 08 Risk & Return
Chapter 08 Risk & ReturnChapter 08 Risk & Return
Chapter 08 Risk & ReturnAlamgir Alwani
 
chapter three interest rates in the financial system.pptx
chapter three interest rates in the financial system.pptxchapter three interest rates in the financial system.pptx
chapter three interest rates in the financial system.pptxEbsaAbdi
 

Tendances (20)

Mishkin ch1& ch2
Mishkin ch1& ch2Mishkin ch1& ch2
Mishkin ch1& ch2
 
1 introduction to financial system.ppt
1 introduction to financial system.ppt1 introduction to financial system.ppt
1 introduction to financial system.ppt
 
Mishkin fmi9ge ppt_c01
Mishkin fmi9ge ppt_c01Mishkin fmi9ge ppt_c01
Mishkin fmi9ge ppt_c01
 
Bond markets
Bond marketsBond markets
Bond markets
 
International Financial Markets
International Financial MarketsInternational Financial Markets
International Financial Markets
 
bond and its types
bond and its typesbond and its types
bond and its types
 
An Overview of Financial System
An Overview of Financial SystemAn Overview of Financial System
An Overview of Financial System
 
Chapter 2 Financial Institutions, Financial Intermediaries and Asset Manageme...
Chapter 2 Financial Institutions, Financial Intermediaries and Asset Manageme...Chapter 2 Financial Institutions, Financial Intermediaries and Asset Manageme...
Chapter 2 Financial Institutions, Financial Intermediaries and Asset Manageme...
 
Bond market ppt
Bond market pptBond market ppt
Bond market ppt
 
Chapter 14_The International Financial System
Chapter 14_The International Financial SystemChapter 14_The International Financial System
Chapter 14_The International Financial System
 
Financial market and institutions
Financial market and institutionsFinancial market and institutions
Financial market and institutions
 
the term structure & risk structure of interest rates
the term structure & risk structure of interest ratesthe term structure & risk structure of interest rates
the term structure & risk structure of interest rates
 
Lecture 1 financial institutions #
Lecture 1 financial institutions #Lecture 1 financial institutions #
Lecture 1 financial institutions #
 
Chapter 21_The Mutual Fund Industry
Chapter 21_The Mutual Fund IndustryChapter 21_The Mutual Fund Industry
Chapter 21_The Mutual Fund Industry
 
Chapter 11_The Stock Market
Chapter 11_The Stock MarketChapter 11_The Stock Market
Chapter 11_The Stock Market
 
Chapter 3 Depository Institutions: Activities and Characteristics
Chapter 3 Depository Institutions: Activities and CharacteristicsChapter 3 Depository Institutions: Activities and Characteristics
Chapter 3 Depository Institutions: Activities and Characteristics
 
Financial markets and their impact on economy
Financial markets and their impact on economyFinancial markets and their impact on economy
Financial markets and their impact on economy
 
Introduction to Financial Markets
Introduction to Financial MarketsIntroduction to Financial Markets
Introduction to Financial Markets
 
Chapter 08 Risk & Return
Chapter 08 Risk & ReturnChapter 08 Risk & Return
Chapter 08 Risk & Return
 
chapter three interest rates in the financial system.pptx
chapter three interest rates in the financial system.pptxchapter three interest rates in the financial system.pptx
chapter three interest rates in the financial system.pptx
 

En vedette

Chapter 07_Central Banking and the Conduct of Monetary Policy
Chapter 07_Central Banking and the Conduct of Monetary PolicyChapter 07_Central Banking and the Conduct of Monetary Policy
Chapter 07_Central Banking and the Conduct of Monetary PolicyRusman Mukhlis
 
Econ315 Money and Banking: Learning Unit #13: Term Structure of Interest Rates
Econ315 Money and Banking: Learning Unit #13: Term Structure of Interest RatesEcon315 Money and Banking: Learning Unit #13: Term Structure of Interest Rates
Econ315 Money and Banking: Learning Unit #13: Term Structure of Interest Ratessakanor
 
Chapter 08_Conduct of Monetary Policy: Tools, Goals, Strategy, and Tactics
Chapter 08_Conduct of Monetary Policy: Tools, Goals, Strategy, and TacticsChapter 08_Conduct of Monetary Policy: Tools, Goals, Strategy, and Tactics
Chapter 08_Conduct of Monetary Policy: Tools, Goals, Strategy, and TacticsRusman Mukhlis
 
Chapter 13_The Foreign Exchange Market
Chapter 13_The Foreign Exchange MarketChapter 13_The Foreign Exchange Market
Chapter 13_The Foreign Exchange MarketRusman Mukhlis
 
Ch06 mish11 embfm
Ch06 mish11 embfmCh06 mish11 embfm
Ch06 mish11 embfmRob Sears
 
Econ315 Money and Banking: Learning Unit #12: Risk Structure of Interest Rates
Econ315 Money and Banking: Learning Unit #12: Risk Structure of Interest RatesEcon315 Money and Banking: Learning Unit #12: Risk Structure of Interest Rates
Econ315 Money and Banking: Learning Unit #12: Risk Structure of Interest Ratessakanor
 
Ch08 mish11 embfm
Ch08 mish11 embfmCh08 mish11 embfm
Ch08 mish11 embfmRob Sears
 
Chapter 12_The Mortgage Markets
Chapter 12_The Mortgage MarketsChapter 12_The Mortgage Markets
Chapter 12_The Mortgage MarketsRusman Mukhlis
 
M16_MISH1520_06_PPW_C15.ppt
M16_MISH1520_06_PPW_C15.pptM16_MISH1520_06_PPW_C15.ppt
M16_MISH1520_06_PPW_C15.pptRusman Mukhlis
 
Chapter 24_Risk Management in Financial Institutions
Chapter 24_Risk Management in Financial InstitutionsChapter 24_Risk Management in Financial Institutions
Chapter 24_Risk Management in Financial InstitutionsRusman Mukhlis
 
Cash Flow Analysis
Cash Flow AnalysisCash Flow Analysis
Cash Flow Analysisnmahfoud
 
OIS and CSA Discounting
OIS and CSA DiscountingOIS and CSA Discounting
OIS and CSA DiscountingQuantifi
 
Experiences Can be Judged by Their Interest Curves - MkII
Experiences Can be Judged by Their Interest Curves - MkIIExperiences Can be Judged by Their Interest Curves - MkII
Experiences Can be Judged by Their Interest Curves - MkIIMichele Bianchi
 
Discounted measures
Discounted measures Discounted measures
Discounted measures Huma Ilyas
 
Interest Rate Hedging with Swaptions
Interest Rate Hedging with SwaptionsInterest Rate Hedging with Swaptions
Interest Rate Hedging with SwaptionsRedington
 
Functional GUIs with F#
Functional GUIs with F#Functional GUIs with F#
Functional GUIs with F#Frank Krueger
 
Capital structure and term structure
Capital structure and term structure Capital structure and term structure
Capital structure and term structure mabruka mohamed
 
Mengelola organisasi pemasaran holistik untuk jangka panjang
Mengelola organisasi pemasaran holistik untuk jangka panjangMengelola organisasi pemasaran holistik untuk jangka panjang
Mengelola organisasi pemasaran holistik untuk jangka panjangFryselLa CiNdy
 

En vedette (19)

Chapter 07_Central Banking and the Conduct of Monetary Policy
Chapter 07_Central Banking and the Conduct of Monetary PolicyChapter 07_Central Banking and the Conduct of Monetary Policy
Chapter 07_Central Banking and the Conduct of Monetary Policy
 
Econ315 Money and Banking: Learning Unit #13: Term Structure of Interest Rates
Econ315 Money and Banking: Learning Unit #13: Term Structure of Interest RatesEcon315 Money and Banking: Learning Unit #13: Term Structure of Interest Rates
Econ315 Money and Banking: Learning Unit #13: Term Structure of Interest Rates
 
Chapter 08_Conduct of Monetary Policy: Tools, Goals, Strategy, and Tactics
Chapter 08_Conduct of Monetary Policy: Tools, Goals, Strategy, and TacticsChapter 08_Conduct of Monetary Policy: Tools, Goals, Strategy, and Tactics
Chapter 08_Conduct of Monetary Policy: Tools, Goals, Strategy, and Tactics
 
Term Structure Of Interest Rate
Term Structure Of Interest RateTerm Structure Of Interest Rate
Term Structure Of Interest Rate
 
Chapter 13_The Foreign Exchange Market
Chapter 13_The Foreign Exchange MarketChapter 13_The Foreign Exchange Market
Chapter 13_The Foreign Exchange Market
 
Ch06 mish11 embfm
Ch06 mish11 embfmCh06 mish11 embfm
Ch06 mish11 embfm
 
Econ315 Money and Banking: Learning Unit #12: Risk Structure of Interest Rates
Econ315 Money and Banking: Learning Unit #12: Risk Structure of Interest RatesEcon315 Money and Banking: Learning Unit #12: Risk Structure of Interest Rates
Econ315 Money and Banking: Learning Unit #12: Risk Structure of Interest Rates
 
Ch08 mish11 embfm
Ch08 mish11 embfmCh08 mish11 embfm
Ch08 mish11 embfm
 
Chapter 12_The Mortgage Markets
Chapter 12_The Mortgage MarketsChapter 12_The Mortgage Markets
Chapter 12_The Mortgage Markets
 
M16_MISH1520_06_PPW_C15.ppt
M16_MISH1520_06_PPW_C15.pptM16_MISH1520_06_PPW_C15.ppt
M16_MISH1520_06_PPW_C15.ppt
 
Chapter 24_Risk Management in Financial Institutions
Chapter 24_Risk Management in Financial InstitutionsChapter 24_Risk Management in Financial Institutions
Chapter 24_Risk Management in Financial Institutions
 
Cash Flow Analysis
Cash Flow AnalysisCash Flow Analysis
Cash Flow Analysis
 
OIS and CSA Discounting
OIS and CSA DiscountingOIS and CSA Discounting
OIS and CSA Discounting
 
Experiences Can be Judged by Their Interest Curves - MkII
Experiences Can be Judged by Their Interest Curves - MkIIExperiences Can be Judged by Their Interest Curves - MkII
Experiences Can be Judged by Their Interest Curves - MkII
 
Discounted measures
Discounted measures Discounted measures
Discounted measures
 
Interest Rate Hedging with Swaptions
Interest Rate Hedging with SwaptionsInterest Rate Hedging with Swaptions
Interest Rate Hedging with Swaptions
 
Functional GUIs with F#
Functional GUIs with F#Functional GUIs with F#
Functional GUIs with F#
 
Capital structure and term structure
Capital structure and term structure Capital structure and term structure
Capital structure and term structure
 
Mengelola organisasi pemasaran holistik untuk jangka panjang
Mengelola organisasi pemasaran holistik untuk jangka panjangMengelola organisasi pemasaran holistik untuk jangka panjang
Mengelola organisasi pemasaran holistik untuk jangka panjang
 

Similaire à Chapter 05_How Do Risk and Term Structure Affect Interest Rate?

ch21 - Econ 442 - financial markets Par 1 of 2 (1).pdf
ch21 - Econ 442 - financial markets Par 1 of 2 (1).pdfch21 - Econ 442 - financial markets Par 1 of 2 (1).pdf
ch21 - Econ 442 - financial markets Par 1 of 2 (1).pdfjgordon21
 
New River Investments Tax Exempt Bond Commentary
New River Investments Tax Exempt Bond CommentaryNew River Investments Tax Exempt Bond Commentary
New River Investments Tax Exempt Bond CommentaryGuillermo Roditi Dominguez
 
Default and the Maturity Structure in Sovereign Bonds
Default and the Maturity Structure in Sovereign BondsDefault and the Maturity Structure in Sovereign Bonds
Default and the Maturity Structure in Sovereign BondsJiayao Li
 
Understanding yield spreads
Understanding yield spreadsUnderstanding yield spreads
Understanding yield spreadsMahendra Mehta
 
Bba 2204 fin mgt week 6 bonds
Bba 2204 fin mgt week 6 bondsBba 2204 fin mgt week 6 bonds
Bba 2204 fin mgt week 6 bondsStephen Ong
 
1Practice with simple calculations related to Fiscal Polic.docx
1Practice with simple calculations related to Fiscal Polic.docx1Practice with simple calculations related to Fiscal Polic.docx
1Practice with simple calculations related to Fiscal Polic.docxeugeniadean34240
 
GEORGE MASON UNIVERSITYSchool of ManagementEMBA 703 Financia.docx
GEORGE MASON UNIVERSITYSchool of ManagementEMBA 703 Financia.docxGEORGE MASON UNIVERSITYSchool of ManagementEMBA 703 Financia.docx
GEORGE MASON UNIVERSITYSchool of ManagementEMBA 703 Financia.docxbudbarber38650
 
ASSIGNMENT3g [Name of the Student][Name of t.docx
ASSIGNMENT3g [Name of the Student][Name of t.docxASSIGNMENT3g [Name of the Student][Name of t.docx
ASSIGNMENT3g [Name of the Student][Name of t.docxedmondpburgess27164
 
Using Cross Asset Information To Improve Portfolio Risk Estimation
Using Cross Asset Information To Improve Portfolio Risk EstimationUsing Cross Asset Information To Improve Portfolio Risk Estimation
Using Cross Asset Information To Improve Portfolio Risk Estimationyamanote
 
Interest Rates overview and knowledge insight
Interest Rates overview and knowledge insightInterest Rates overview and knowledge insight
Interest Rates overview and knowledge insightjustmeyash17
 
Valuation of bonds and debentures
Valuation of bonds and debenturesValuation of bonds and debentures
Valuation of bonds and debenturesBhargavi Bhanu
 
Investing in a Rising Rate Environment - Dec. 2011
Investing in a Rising Rate Environment - Dec. 2011Investing in a Rising Rate Environment - Dec. 2011
Investing in a Rising Rate Environment - Dec. 2011RobertWBaird
 

Similaire à Chapter 05_How Do Risk and Term Structure Affect Interest Rate? (20)

Chapter6
Chapter6Chapter6
Chapter6
 
ch21 - Econ 442 - financial markets Par 1 of 2 (1).pdf
ch21 - Econ 442 - financial markets Par 1 of 2 (1).pdfch21 - Econ 442 - financial markets Par 1 of 2 (1).pdf
ch21 - Econ 442 - financial markets Par 1 of 2 (1).pdf
 
Bonds
BondsBonds
Bonds
 
Interest rates part_2
Interest rates part_2Interest rates part_2
Interest rates part_2
 
Investment Insights for November 2017
Investment Insights for November 2017Investment Insights for November 2017
Investment Insights for November 2017
 
New River Investments Tax Exempt Bond Commentary
New River Investments Tax Exempt Bond CommentaryNew River Investments Tax Exempt Bond Commentary
New River Investments Tax Exempt Bond Commentary
 
Lecture004.pdf
Lecture004.pdfLecture004.pdf
Lecture004.pdf
 
Default and the Maturity Structure in Sovereign Bonds
Default and the Maturity Structure in Sovereign BondsDefault and the Maturity Structure in Sovereign Bonds
Default and the Maturity Structure in Sovereign Bonds
 
Mba Finance
Mba FinanceMba Finance
Mba Finance
 
Understanding yield spreads
Understanding yield spreadsUnderstanding yield spreads
Understanding yield spreads
 
Ch 5
Ch 5Ch 5
Ch 5
 
Bba 2204 fin mgt week 6 bonds
Bba 2204 fin mgt week 6 bondsBba 2204 fin mgt week 6 bonds
Bba 2204 fin mgt week 6 bonds
 
1Practice with simple calculations related to Fiscal Polic.docx
1Practice with simple calculations related to Fiscal Polic.docx1Practice with simple calculations related to Fiscal Polic.docx
1Practice with simple calculations related to Fiscal Polic.docx
 
GEORGE MASON UNIVERSITYSchool of ManagementEMBA 703 Financia.docx
GEORGE MASON UNIVERSITYSchool of ManagementEMBA 703 Financia.docxGEORGE MASON UNIVERSITYSchool of ManagementEMBA 703 Financia.docx
GEORGE MASON UNIVERSITYSchool of ManagementEMBA 703 Financia.docx
 
ASSIGNMENT3g [Name of the Student][Name of t.docx
ASSIGNMENT3g [Name of the Student][Name of t.docxASSIGNMENT3g [Name of the Student][Name of t.docx
ASSIGNMENT3g [Name of the Student][Name of t.docx
 
Using Cross Asset Information To Improve Portfolio Risk Estimation
Using Cross Asset Information To Improve Portfolio Risk EstimationUsing Cross Asset Information To Improve Portfolio Risk Estimation
Using Cross Asset Information To Improve Portfolio Risk Estimation
 
Interest Rates overview and knowledge insight
Interest Rates overview and knowledge insightInterest Rates overview and knowledge insight
Interest Rates overview and knowledge insight
 
ch06.ppt
ch06.pptch06.ppt
ch06.ppt
 
Valuation of bonds and debentures
Valuation of bonds and debenturesValuation of bonds and debentures
Valuation of bonds and debentures
 
Investing in a Rising Rate Environment - Dec. 2011
Investing in a Rising Rate Environment - Dec. 2011Investing in a Rising Rate Environment - Dec. 2011
Investing in a Rising Rate Environment - Dec. 2011
 

Dernier

Explore beautiful and ugly buildings. Mathematics helps us create beautiful d...
Explore beautiful and ugly buildings. Mathematics helps us create beautiful d...Explore beautiful and ugly buildings. Mathematics helps us create beautiful d...
Explore beautiful and ugly buildings. Mathematics helps us create beautiful d...christianmathematics
 
Beyond the EU: DORA and NIS 2 Directive's Global Impact
Beyond the EU: DORA and NIS 2 Directive's Global ImpactBeyond the EU: DORA and NIS 2 Directive's Global Impact
Beyond the EU: DORA and NIS 2 Directive's Global ImpactPECB
 
The Most Excellent Way | 1 Corinthians 13
The Most Excellent Way | 1 Corinthians 13The Most Excellent Way | 1 Corinthians 13
The Most Excellent Way | 1 Corinthians 13Steve Thomason
 
social pharmacy d-pharm 1st year by Pragati K. Mahajan
social pharmacy d-pharm 1st year by Pragati K. Mahajansocial pharmacy d-pharm 1st year by Pragati K. Mahajan
social pharmacy d-pharm 1st year by Pragati K. Mahajanpragatimahajan3
 
Q4-W6-Restating Informational Text Grade 3
Q4-W6-Restating Informational Text Grade 3Q4-W6-Restating Informational Text Grade 3
Q4-W6-Restating Informational Text Grade 3JemimahLaneBuaron
 
Sanyam Choudhary Chemistry practical.pdf
Sanyam Choudhary Chemistry practical.pdfSanyam Choudhary Chemistry practical.pdf
Sanyam Choudhary Chemistry practical.pdfsanyamsingh5019
 
General AI for Medical Educators April 2024
General AI for Medical Educators April 2024General AI for Medical Educators April 2024
General AI for Medical Educators April 2024Janet Corral
 
Software Engineering Methodologies (overview)
Software Engineering Methodologies (overview)Software Engineering Methodologies (overview)
Software Engineering Methodologies (overview)eniolaolutunde
 
Ecosystem Interactions Class Discussion Presentation in Blue Green Lined Styl...
Ecosystem Interactions Class Discussion Presentation in Blue Green Lined Styl...Ecosystem Interactions Class Discussion Presentation in Blue Green Lined Styl...
Ecosystem Interactions Class Discussion Presentation in Blue Green Lined Styl...fonyou31
 
Measures of Dispersion and Variability: Range, QD, AD and SD
Measures of Dispersion and Variability: Range, QD, AD and SDMeasures of Dispersion and Variability: Range, QD, AD and SD
Measures of Dispersion and Variability: Range, QD, AD and SDThiyagu K
 
microwave assisted reaction. General introduction
microwave assisted reaction. General introductionmicrowave assisted reaction. General introduction
microwave assisted reaction. General introductionMaksud Ahmed
 
Russian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in Delhi
Russian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in DelhiRussian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in Delhi
Russian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in Delhikauryashika82
 
Z Score,T Score, Percential Rank and Box Plot Graph
Z Score,T Score, Percential Rank and Box Plot GraphZ Score,T Score, Percential Rank and Box Plot Graph
Z Score,T Score, Percential Rank and Box Plot GraphThiyagu K
 
A Critique of the Proposed National Education Policy Reform
A Critique of the Proposed National Education Policy ReformA Critique of the Proposed National Education Policy Reform
A Critique of the Proposed National Education Policy ReformChameera Dedduwage
 
Holdier Curriculum Vitae (April 2024).pdf
Holdier Curriculum Vitae (April 2024).pdfHoldier Curriculum Vitae (April 2024).pdf
Holdier Curriculum Vitae (April 2024).pdfagholdier
 
SOCIAL AND HISTORICAL CONTEXT - LFTVD.pptx
SOCIAL AND HISTORICAL CONTEXT - LFTVD.pptxSOCIAL AND HISTORICAL CONTEXT - LFTVD.pptx
SOCIAL AND HISTORICAL CONTEXT - LFTVD.pptxiammrhaywood
 
Presentation by Andreas Schleicher Tackling the School Absenteeism Crisis 30 ...
Presentation by Andreas Schleicher Tackling the School Absenteeism Crisis 30 ...Presentation by Andreas Schleicher Tackling the School Absenteeism Crisis 30 ...
Presentation by Andreas Schleicher Tackling the School Absenteeism Crisis 30 ...EduSkills OECD
 

Dernier (20)

Mattingly "AI & Prompt Design: The Basics of Prompt Design"
Mattingly "AI & Prompt Design: The Basics of Prompt Design"Mattingly "AI & Prompt Design: The Basics of Prompt Design"
Mattingly "AI & Prompt Design: The Basics of Prompt Design"
 
Explore beautiful and ugly buildings. Mathematics helps us create beautiful d...
Explore beautiful and ugly buildings. Mathematics helps us create beautiful d...Explore beautiful and ugly buildings. Mathematics helps us create beautiful d...
Explore beautiful and ugly buildings. Mathematics helps us create beautiful d...
 
Beyond the EU: DORA and NIS 2 Directive's Global Impact
Beyond the EU: DORA and NIS 2 Directive's Global ImpactBeyond the EU: DORA and NIS 2 Directive's Global Impact
Beyond the EU: DORA and NIS 2 Directive's Global Impact
 
Advance Mobile Application Development class 07
Advance Mobile Application Development class 07Advance Mobile Application Development class 07
Advance Mobile Application Development class 07
 
The Most Excellent Way | 1 Corinthians 13
The Most Excellent Way | 1 Corinthians 13The Most Excellent Way | 1 Corinthians 13
The Most Excellent Way | 1 Corinthians 13
 
Mattingly "AI & Prompt Design: Structured Data, Assistants, & RAG"
Mattingly "AI & Prompt Design: Structured Data, Assistants, & RAG"Mattingly "AI & Prompt Design: Structured Data, Assistants, & RAG"
Mattingly "AI & Prompt Design: Structured Data, Assistants, & RAG"
 
social pharmacy d-pharm 1st year by Pragati K. Mahajan
social pharmacy d-pharm 1st year by Pragati K. Mahajansocial pharmacy d-pharm 1st year by Pragati K. Mahajan
social pharmacy d-pharm 1st year by Pragati K. Mahajan
 
Q4-W6-Restating Informational Text Grade 3
Q4-W6-Restating Informational Text Grade 3Q4-W6-Restating Informational Text Grade 3
Q4-W6-Restating Informational Text Grade 3
 
Sanyam Choudhary Chemistry practical.pdf
Sanyam Choudhary Chemistry practical.pdfSanyam Choudhary Chemistry practical.pdf
Sanyam Choudhary Chemistry practical.pdf
 
General AI for Medical Educators April 2024
General AI for Medical Educators April 2024General AI for Medical Educators April 2024
General AI for Medical Educators April 2024
 
Software Engineering Methodologies (overview)
Software Engineering Methodologies (overview)Software Engineering Methodologies (overview)
Software Engineering Methodologies (overview)
 
Ecosystem Interactions Class Discussion Presentation in Blue Green Lined Styl...
Ecosystem Interactions Class Discussion Presentation in Blue Green Lined Styl...Ecosystem Interactions Class Discussion Presentation in Blue Green Lined Styl...
Ecosystem Interactions Class Discussion Presentation in Blue Green Lined Styl...
 
Measures of Dispersion and Variability: Range, QD, AD and SD
Measures of Dispersion and Variability: Range, QD, AD and SDMeasures of Dispersion and Variability: Range, QD, AD and SD
Measures of Dispersion and Variability: Range, QD, AD and SD
 
microwave assisted reaction. General introduction
microwave assisted reaction. General introductionmicrowave assisted reaction. General introduction
microwave assisted reaction. General introduction
 
Russian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in Delhi
Russian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in DelhiRussian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in Delhi
Russian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in Delhi
 
Z Score,T Score, Percential Rank and Box Plot Graph
Z Score,T Score, Percential Rank and Box Plot GraphZ Score,T Score, Percential Rank and Box Plot Graph
Z Score,T Score, Percential Rank and Box Plot Graph
 
A Critique of the Proposed National Education Policy Reform
A Critique of the Proposed National Education Policy ReformA Critique of the Proposed National Education Policy Reform
A Critique of the Proposed National Education Policy Reform
 
Holdier Curriculum Vitae (April 2024).pdf
Holdier Curriculum Vitae (April 2024).pdfHoldier Curriculum Vitae (April 2024).pdf
Holdier Curriculum Vitae (April 2024).pdf
 
SOCIAL AND HISTORICAL CONTEXT - LFTVD.pptx
SOCIAL AND HISTORICAL CONTEXT - LFTVD.pptxSOCIAL AND HISTORICAL CONTEXT - LFTVD.pptx
SOCIAL AND HISTORICAL CONTEXT - LFTVD.pptx
 
Presentation by Andreas Schleicher Tackling the School Absenteeism Crisis 30 ...
Presentation by Andreas Schleicher Tackling the School Absenteeism Crisis 30 ...Presentation by Andreas Schleicher Tackling the School Absenteeism Crisis 30 ...
Presentation by Andreas Schleicher Tackling the School Absenteeism Crisis 30 ...
 

Chapter 05_How Do Risk and Term Structure Affect Interest Rate?