David p echevarria dr all rights reserved 7 homework a

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Unformatted text preview: l Rights Reserved 7 HOMEWORK A. Briefly describe the implications of the following theories; Briefly implications 1. 2. 3. Pure Expectations Theory Liquidity Premium Theory Segmented Markets Theory B. C. What factors do we consider when investing in bonds? Why is the normal shape of the Yield Curve upward sloping Why to the right? to D. What do we mean by a before-tax equivalent yield and why What is it important? is E. What is a forward rate and Why is it important? What and Dr. David P. Echevarria Dr. All Rights Reserved 8...
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This document was uploaded on 02/11/2014.

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