- Which fluctuates more—long-term or short-term interest rates? Why?
- What does it mean when it is said that the United States is running a trade deficit? What impact will a trade deficit have on interest rates? Please explain.
- If interest rates rise after a bond issue, what will happen to the bond’s price and YTM? Does the time to maturity affect the extent to which interest rate changes affect the bond’s price?
TEXTBOOK: Brigham Fundamental of Financial Management: Concise Edition 10e CM
Chapters 6 and 7