Discount rate how is it set explain the relationship


Explain or define each of the following:

A. Discount rate, how is it set?

B. Explain the relationaship between the discount rate, and the Fed. Fund Rate.

C. A U.S. Treasury bill with a 180 days to maturity has a discount yield of 5% and a face value of $100,000. What is its current price?

D. WHat does an inverted Treasury yield curve about future expectation about the economy?

E. Explain herding behavior by investors.

F. How would a potential bias effect the way you invest in securities?

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Financial Management: Discount rate how is it set explain the relationship
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