| Money and Capital Markets: Financial Institutions and Instruments in a Global Marketplace, 8/e Peter Rose,
Texas A & M University
Marketability, Default Risk, Call Privileges, Prepayment Risk, Taxes, and Other Factors Affecting Interest Rates and Asset Prices
Chapter Objectives
You will see the effect of several different features of various loans and
securities—such as their marketability, liquidity, default risk, call privileges,
prepayment risk, convertibility, and taxability—upon their interest rates or yields. |
| | | You will learn why we have, not one, but, in fact, thousands of different interest
rates within the global economy. |
| | | You will discover how the “structure of interest rates” is built and why that rate
structure is constantly undergoing change. |
| | | You will see more clearly why it is so difficult to accurately forecast interest rates
and financial asset prices. |
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