Interest rate expectations have been thought to be an important influence on bond sales because:

Related MCQs

• A bond whose coupon rate is below the current market rate of interest will have a price:
• According to --------- theory of interest, the rate of Interest is the price of credit which is determined by the demand and supply for loanable funds.
• ................ bonds permit the bond holder to invest the interest income again in host bonds
• For given change in interest rates, percentage change in present value of bond is classified as
• The ability of central banks to influence short-term interest rates rests upon:
• Type of swaps in which fixed payments of interest are exchanged by two counterparties for floating payments of interest are called
• In a situation where share prices are generally depressed because long-term interest rates are expected to rise in future, a large firm looking for long-term finance would normally consider:
• While hedging through interest rate futures reduces or eliminates the risk of loss, it also
• According to the Fisher hypothesis, the nominal rate of interest consists of:
• A central bank which sets the short-term rate of interest must: