Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. characteristic component symbol this is the rate o

Characteristic Component Symbol This is the rate on a Treasury bill or a Treasury bond....

80.2K

Verified Solution

Question

Finance

image

Characteristic Component Symbol This is the rate on a Treasury bill or a Treasury bond. It changes over time, depending on the expected rate of return on productive assets exchanged among market participants and people's time preferences for consumption. It is based on the bond's marketability and trading frequency; the less frequently the security is traded, the higher the premium added, thus increasing the interest rate. Over the past several years, Germany, Japan, and Switzerland have had lower interest rates than the United States due to lower values of this premium. This is the premium that reflects the risk associated with changes in interest rates for a long-term security. This is the difference between the interest rate on a US Treasury bond and a corporate bond of the same profile-that is, the same maturity and marketability

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Accounting
1.2K views

Why do you think you need to understand manual andcomputer-based accounting systems? What part...

Biology
1.2K views

Match the following equilibrium receptors with the motion they detect Changes in head position along...

Basic Math
1.2K views

Let 3 f x 2 1 1 1 x Y f x y g x...

Basic Math
1.2K views

Solve the following system by graphing.2x - y = 64x - 2y = 6Use the...

Algebra
1.2K views

Use algebra to show that pk+1(n) ? Pk+1(n ? 1) = Pk(n).Note do not expand...

Accounting
1.2K views

Case study...

Accounting
1.2K views

The Bad News Bears (BNB) Company have had trouble collecting all of their accounts receivable...

Accounting
1.2K views

The following totals for the month of April were taken from the payroll records of...

Accounting
1.2K views

Concord Corporation prepares quarterly financial statements. The post-closing trial balance at December 31, 2016, is...

Accounting
1.2K views

If a firm is able to refinance an existing loan to take advantage of a...

Accounting
1.2K views

PLEASE HELP ME!! THIS IS AN EMERGENCY!!! CAN YOU PLEASE DO THIS AS SOON AS...

Accounting
1.2K views

Which of the following trial balances are used as a source for preparing the income...