The rate of interest is expressed as a yearly percentage and it represents the proportion charged by the lender for the loaned amount charged as interest. Some of the factors influencing interest rate are:
1. Inflation. The actual or the anticipated inflation is the first factor that influences the rates of interest. Inflation is the percentage rise in the standard price of good and services over a specific time period. There is a direct relationship between inflation and interest rates. This implies that in
What are the main factors influencing the interest rates?
DQ2
Please define and explain the use of the duration and convexity.
Initial Response: Due by Day 2
Please note: The initial discussion post requires submission in two places. Please post initial discussion response in the Forums portion of Bb for peers to view as well as the assignment link below for grading.
Peer Responses: Due day 6.
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