15.7 - RETURN OVER INFLATION DOES NOT INCLUDE DEFAULT RISK...

Info iconThis preview shows pages 1–10. Sign up to view the full content.

View Full Document Right Arrow Icon
    INTEREST RATES  YIELD TO MATURITY YIELDS
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
NORMAL YIELD CURVE
Background image of page 2
NORMAL YIELD CURVE RISK FACTORS  INCREASE OVER  TIME: 1. INFLATION 2. DEFAULT RISK LONGER TERM RATES  SHOULD BE HIGHER  THAN SHORT-TERM  RATES
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
INVERTED YIELD CURVE
Background image of page 4
RISK FREE  RATE OF  RETURN NO DEFAULT RISK GOVERNMENT OF CANADA BONDS ALL OTHER BONDS TRADE AT A  SPREAD OVER “CANADAs” RISKIER THE ISSUER….THE HIGHER  THE SPREAD.
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
REAL  RATE OF RETURN
Background image of page 6
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Background image of page 8
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Background image of page 10
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: RETURN OVER INFLATION DOES NOT INCLUDE DEFAULT RISK 2% TO 4% RANGE INFLUENCES ON INTEREST RATES INFLATION EXPECTATIONS CANADIAN DOLLAR TOO STRONG OR TOO WEAK ECONOMIC INDICATORS OF INFLATION FACTORY ORDERS RETAIL SALES DURABLE GOODS CONSUMER CONFIDENCE HOUSING STARTS EMPLOYMENT CONSUMER PRICE INDEX CORE INFLATION...
View Full Document

{[ snackBarMessage ]}

Page1 / 10

15.7 - RETURN OVER INFLATION DOES NOT INCLUDE DEFAULT RISK...

This preview shows document pages 1 - 10. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online