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| Teaching Since: | Apr 2017 |
| Last Sign in: | 56 Weeks Ago, 5 Days Ago |
| Questions Answered: | 7570 |
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BS,MBA, PHD
Adelphi University/Devry
Apr-2000 - Mar-2005
HOD ,Professor
Adelphi University
Sep-2007 - Apr-2017
Week 2 Homework
Directions: Answer the following questions on a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both. Submit your assignment using the assignment link above. This homework assignment is worth 20 points.
1. Explain why the credit crisis caused a lack of liquidity in the secondary markets for many types of debt securities. Explain how such a lack of liquidity would affect the prices of the debt securities in the secondary markets.
2. Explain why interest rates changed as they did over the past year.
3. Why do forecasts of interest rates differ among experts?
4. Assume that the yield curves in the United States, France, and Japan are flat. If the U.S. yield curve then suddenly become so positively sloped, do you think the yield curves in France and Japan would be affected? If so, how?
5. Explain why participating in the euro causes a country to give up its independent monetary policy and control over its domestic interest rates.
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