Positive interest rates on bonds in a world
Would there be positive interest rates on bonds in a world with absolutely no risk (no default risk, maturity risk, and so on)? Why would a lender demand and a borrower be willing to pay, a positive interest rate in such a no risk world?
Expert
There would be a positive interest rate in a world free of risk. This is because whether risk is there or not, lenders of money cannot spend during the time the money is loaned. So lenders lose the chance to invest their money for that period of time. To compensate for the cost of losing investment chances while they postpone their spending, borrowers pay on lenders demand, a basic rate of return, and the real rate of interest.
Assignment: The objectives/purpose of the research paper project are to enable you to do a comprehensive financial analysis of a publicly traded corporation; and provide you with substantial information for you to make recommendations regarding investing in this corporation. You
Explain distribution of quants’ salaries with a survey on a company.
Briefly explain the operating leverage effect and the reason for it to occur? What are the advantages and limitations of high operating leverage?
Explain maintenance of future and option margins.
Explain when standard deviation is not relevant?
How is Sortino Ratio Work?
What volatility should be used for each option series hence the theoretical Black–Scholes price and the market price are similar?
An optimal capital structure exists, explain the reasons. Why very small amount of debt is as undesirable as is very big amount debt?
What are statistical or macroeconomic factors?
When we can use Monte Carlo numerical method?
18,76,764
1936790 Asked
3,689
Active Tutors
1451697
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!