Assignment:
Q1. What is the “price” of debt capital?
Q2. What four factors affect the cost of money?
Q3. How do interest rates serve to allocate debt capital among borrowers?
Q4. How does risk affect interest rates?
Q5. What happens to the market-clearing, or equilibrium, interest rate when the loan demand changes?
Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.