tailieunhanh - Lecture Money and capital markets: Financial institutions and instruments in a global marketplace (8th edition): Chapter 6 - Peter S. Rose

Chapter 6 - Measuring and calculating interest rates and financial asset prices. In this chapter you will explore the important relationships between the interest rates on bonds and other financial instruments and their market value or price; you will be introduced to the many different ways lending institutions may calculate the interest rates they charge borrowers for loans;. | Money and Capital Markets 6 C h a p t e r Eighth Edition Financial Institutions and Instruments in a Global Marketplace Peter S. Rose McGraw Hill / Irwin Slides by Yee-Tien (Ted) Fu Measuring and Calculating Interest Rates and Financial Asset Prices Learning Objectives To learn how to measure and calculate interest rates and the prices of financial assets. To understand the relationship between the interest rate on a financial instrument and its market value. To look at the many different ways that banks and other lending institutions calculate the interest rates they charge borrowers for loans. Learning Objectives To determine how interest rates or yields on deposits in banks, credit unions, and other depository institutions are figured. Units of Measurement For Interest Rates and Security Prices The interest rate is the price that is charged to a borrower for the loan of money. Interest Fee required by the lender for rate on = the borrower to obtain credit 100 loanable . | Money and Capital Markets 6 C h a p t e r Eighth Edition Financial Institutions and Instruments in a Global Marketplace Peter S. Rose McGraw Hill / Irwin Slides by Yee-Tien (Ted) Fu Measuring and Calculating Interest Rates and Financial Asset Prices Learning Objectives To learn how to measure and calculate interest rates and the prices of financial assets. To understand the relationship between the interest rate on a financial instrument and its market value. To look at the many different ways that banks and other lending institutions calculate the interest rates they charge borrowers for loans. Learning Objectives To determine how interest rates or yields on deposits in banks, credit unions, and other depository institutions are figured. Units of Measurement For Interest Rates and Security Prices The interest rate is the price that is charged to a borrower for the loan of money. Interest Fee required by the lender for rate on = the borrower to obtain credit 100 loanable Amount of credit made funds available to the borrower Interest rates are usually expressed as annualized percentages. However, both 360-day and 365-day years are commonly used. The compounding terms may also differ. Units of Measurement For Interest Rates and Security Prices A basis point equals 1/100 of a percentage point. Example = 10% + 50 basis points, or 1050 basis points Units of Measurement For Interest Rates and Security Prices The prices of common and preferred stock are measured today in many markets in terms of dollars and decimal fractions of a dollar (or some other currency unit). Example $ per share (versus $40 1/4 in the recent past) Units of Measurement For Interest Rates and Security Prices Bond prices are usually expressed in points and fractions of a point, with each point representing $1 on a $100 basis or $10 for a $1000 bond. Example A bond priced at 97 is selling for $97 on a $100 basis, or $970 for each $1000 in face value. Units of Measurement For .

• Tài chính doanh nghiệp
• Capital markets
• Money markets
• Financial institutions
• Financial instruments
• Global marketplace
• Calculating interest rates
• Financial system
• Financial markets
• Central banks
• Monetary policy
• Stock markets
• Lecture Money and capital markets
• Global economy
• Financial assets
• Financial transactions
• Financial information marketplace
• Financial forces
• Interest rates
• Risk structure of interest rates
• Interest rate forecasting
• Investment risk
• Major corporations
• Federal credit agencies
• Services of the federal reserve
• Central bank monetary policy
• Commercial banking industry
• Nonbank thrift institutions
• Insurance companies
• Investment banks
• Federal reserve system
• Local governments operating
• Business borrowing
• Corporate stock
• Consumer lending
• Residential mortgage market
• International transactions
• Currency values