Introduction • Car loans, home mortgages, and even credit card balances all create a loan from a financial intermediary - just like government and corporate bonds. • Virtually any financial ...
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...Introduction car loans home mortgages and even credit card balances all create a loan from financial intermediary just like government corporate bonds virtually any arrangement involving the current transfer of resources lender to borrower with back in future is form bond this free flow through markets essential well functioning economy alexander hamilton first secretary us treasury brought u s one his acts was consolidate debt revolutionary war resulting many features original are same more complex market goals chapter understand system particularly we must relationship between prices interest rates that supply demand determine why risky standard specifies fixed amounts be paid exact dates payments how much should you willing pay for depends on characteristics will examine four basic types zero coupon or discount promise single payment date example bill sequence mortgage periodic principal repayment at maturity most consol forever never repaid k has some outstanding...