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?