Define speculation.
Define Domestic Nonfinancial Debt.
Why may consumer debt be at historic levels? Why may corporate debt be at historic levels.
What may be some future trends of the financial system? Explain. Explain and graphically illustrate the two models of interest rate determination
What factors may cause shifts in the curves in the above models? Explain the inverse relationship between bond prices and yield. Define yield to maturity.
Discuss term to maturity and interest rate differentials. Explain the yield curve.
Discuss expectations theory. Discuss credit risk. Define real interest rate. Know some types of bonds.
Explain the present value formula. Explain the discount rate. Discuss compounding.