Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
23 Cards in this Set
- Front
- Back
|
The barter system gave way to
|
indirect exchange
|
|
|
The intrest rate that economist consider to be the most accurate
|
yield to maturity
|
|
|
a credit market that pays the owner of the bond the face value of the security at the maturity date and nothing prior is
|
discount bond
|
|
|
an equal increase in all bond intrest rates
|
decreases the the price of a 10 year bond more than the price of a 5 year bonda
|
|
|
a credit market instrument that provides the borrower with an amount of funds that must be repaid at the maturity rate along with an intrest payment
|
simple loan
|
|
|
concept that a dollar paid to you in the future is less valuble than a dollar payed to you today
|
present value
|
|
|
a coupon bond pays the owner of the bond
|
a fixed intrest payment every period and repays the face value at the maturity date
|
|
|
prices and returns for _______ bonds are more volatile than those for ______ bonds
|
long- term, short- term
|
|
|
Current Yield
|
close approximation for the yield to maturity, formula is identical to the yield to maturity, defined as the yearly coupon payment divided by the price of the security
|
|
|
when the inflation rate is expected to increase, the _____ for bonds falls, while the _____ Curve shits the the right
|
demand, supply
|
|
|
factor that increases the demand for bonds
|
an increase in the volatility of stock prices
|
|
|
Opportunity cost of holding money
|
price level and intrest rate
|
|
|
when intrest rates become less volatile,the demand for bonds_____ and the intrest rates ______
|
increases, falles
|
|
|
lowest rate of intrest
|
Municipal bonds
|
|
|
the fischer effect corrects
|
the loss of interest due to inflation
|
|
|
the segmented market theory states
|
bonds of different maturities are not substitutes what so ever
|
|
|
Financial markets can be defined as
|
any place that brings together lenders and buyers
|
|
|
What's a positive of holding debt over equity
|
guarnteed interest rate
|
|
|
a publically traded company will recieve money during
|
IPO
|
|
|
In times of high inflation you would rather be
|
borrowing money
|
|
|
A bond that never matures
|
A consol and perpetuity
|
|
|
a Credit market instrument that provides the borrower with the amount of funds that must be repaid at the maturity date along with an intrest payment is known as
|
simple loan
|
|
|
a coupon bond pays the owner
|
a fixed intrest payment every period and repays the face value at the maturity date
|
