Chap009 - Chapter 9 Interest Rates Slides 9-1 9-2 9-3 9-4...

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Chapter 9 Interest Rates Slides 9-1 Fundamentals of Investments 9-2 Interest Rates 9-3 U.S. Interest Rate History 9-4 Money Market Interest Rates 9-5 Money Market Rates, I. 9-6 Money Market Rates, II. 9-7 Money Market Rates, III. 9-8 Money Market Prices and Rates 9-9 The Bank Discount Basis 9-10 Example: Calculating a Price Using a Bank Discount Rate 9-11 Treasury Bill Quotes in The Wall Street Journal 9-12 Treasury Bill Prices, March 20, 2003 9-13 Bond Equivalent Yields 9-14 Example I: Bond Equivalent Yield 9-15 Example II: Calculating T-bill Prices Using Bond Equivalent Yield 9-16 More Ways to Quote Interest Rates 9-17 Example: The BEY on a T-bill is really just an APR 9-18 Converting APRs to EARs 9-19 Example I: What is the EAR of this T-bill’s BEY (aka APR)? 9-20 Example II: Converting Credit Card APRs to EARs 9-21 Rates and Yields on Fixed-Income Securities 9-22 The Treasury Yield Curve 9-23 Example: The Treasury Yield Curve 9-24 Yield Comparisons 9-25 The Term Structure of Interest Rates, I. 9-26 The Term Structure of Interest Rates, II. 9-27 U.S. Treasury STRIPS 9-28 U.S. Treasury STRIPS 9-29 Example: Pricing U.S. Treasury STRIPS, I. 9-30 Example: Pricing U.S. Treasury STRIPS, II. 9-31 Nominal versus Real Interest Rates 9-32 Real T-bill Rates 9-33 Nominal versus Real Interest Rates 9-34 Inflation Rates and T-bill Rates 9-35 Traditional Theories of the Term Structure 9-36 Problems with Traditional Theories 9-37 Problems with Traditional Theories 9-38 Modern Term Structure Theory, I.
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A-77 Chapter 9 Slides, Cont. 9-39 Modern Term Structure Theory, II. 9-40 Useful Internet Sites 9-41 Chapter Review, I. 9-42 Chapter Review, II. 9-43 Chapter Review, III. Chapter Organization 9.1 Interest Rate History and Money Market Rates A. Interest Rate History B. Money Market Rates 9.2 Money Market Prices and Rates A. Bank Discount Rate Quotes B. Treasury Bill Quotes C. Bank Discount Yields versus Bond Equivalent Yields D. Bond Equivalent Yields, APRs, and EARs 9.3 Rates and Yields on Fixed-Income Securities A. The Treasury Yield Curve B. Rates on Other Fixed-Income Investments 9.4 The Term Structure of Interest Rates A. Treasury STRIPS B. Yields for U.S. Treasury STRIPS 9.5 Nominal versus Real Interest Rates A. Real Interest Rates B. The Fisher Hypothesis 9.6 Traditional Theories of the Term Structure A. Expectations Theory B. Maturity Preference Theory C. Market Segmentation Theory 9.7 Determinants of Nominal Interest Rates: A Modern Perspective A. Problems with Traditional Theories B. Modern Term Structure Theory C. Liquidity and Default Risk 9.8 Summary and Conclusions
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Interest Rates A-78 Selected Web Sites www.money-rates.com (reference for the latest money market rates) www.gmacfs.com (reference for General Motors Acceptance Corp.) www.gecapital.com (reference for General Electric Capital) www.bba.org.uk (reference to learn more about LIBOR) www.govpx.com (source for price and yield data for U.S. Treasuries)
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This note was uploaded on 08/12/2009 for the course FIN 315 taught by Professor Wheeler during the Spring '09 term at Loyola New Orleans.

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Chap009 - Chapter 9 Interest Rates Slides 9-1 9-2 9-3 9-4...

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