econ423courseobjectives5and6

econ423courseobjectives5and6 - Course Objectives Chapters 5...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Course Objectives Chapters 5 and 6 Econ 423 - Financial Markets Lauren Heller, Summer 2009 Chapter 5: Risk and Term Structure of Interest Rates Objectives By the end of this chapter, you should be able to: o Explain the factors affecting the risk and liquidity structure of interest rates, as well as the determinants of the risk premium on a bond. o Clearly identify the empirical facts pertaining to shape of the yield curve and the movement of interest rates over time. o Differentiate between theories of term structure, and be able to explain the contributions of each theory toward explaining the “stylized facts” of expectations and term structure. o Calculate the effects of a change in marginal tax rates on the demand, prices, and equilibrium interest rates for municipal, corporate, and treasury bonds. o Using the expectations theory, calculate the interest rates at varying terms to maturity when given a series of anticipated future interest rates. o
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Ask a homework question - tutors are online