What are two reasons for low interest rates on US government bonds relative to private bonds?
What are two reasons for low interest rates on US government bonds relative to private bonds?
Homework Answers
US bonds are more secure than the private bonds that increases the demand for the government bonds in the market, at a higher demand the price of the bonds rises and at a higher prices the interest rate of the bonds will be low, price of the bonds and interest rates are inversely related in the market.
Private bonds are more insecure that makes the demand less and prices low there by they have a high interest rate in the market.
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What are two reasons for low interest rates on US government
bonds relative to private bonds?
QUESTION 10 Cap rates are influenced by the yield on US government bonds and interest rates...
QUESTION 10 Cap rates are influenced by the yield on US government bonds and interest rates but are ultimately set by the flow of funds into the commercial real estate market? True False
c) Predict what will happen to interest rates on a corporation's bonds if the federal government...
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Impact of interest rates on bonds
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What are the reasons for very high nominal interest rates in the 1980s?
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QUESTION 10 Cap rates are influenced by the yield on US government bonds and interest rates but are ultimately set by the flow of funds into the commercial real estate market? True False
c) Predict what will happen to interest rates on a corporation's bonds if the federal government guarantees today that it will pay creditors if the corporation goes bankrupt in the future. What will happen to the interest rates on Treasury securities? d) In 2010 and 2011, the government of Greece risked defaulting on its debt due to a severe budget crisis. Using bond market graphs, compare the effects on the risk premium between U.S. Treasury debt and comparable-maturity Greek debt.
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