Formal Guidelines About Legal and Ethical Behavior Will Prevent a Salesperson

question 57

True/False

Formal guidelines about legal and ethical behavior will prevent a salesperson from crossing the line.

Identify different shapes of yield curves (normal, inverse, flat) and understand their economic implications.

Apply the term structure of interest rates to estimate future interest rates and bond valuations.

Analyze forward rates and their relationship to yield to maturity and interest rates.

Evaluate the impact of interest rate expectations on bond prices and yields.

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Definitions:

Interest

A charge for borrowed money, generally a percentage of the amount borrowed.

Simple Interest Rate

A method of calculating interest where the charge is based only on the original principal, not on the accumulated interest.

Investment

The assignment of monetary values in the hope of making a profit or gaining income.

Interest

A fee paid for the use of borrowed funds, or for delaying the repayment of a debt.