Examlex
Why do consumers misbehave? Discuss three of the several reasons given in the textbook.
Interest-Rate Change
A fluctuation in the cost of borrowing or the return on savings, which can significantly impact financial markets and economic conditions.
Term to Maturity
The duration of time until the final repayment date of a loan, bond, or other financial instrument.
Coupon Rate
The coupon rate is the interest rate that the issuer of a bond or other fixed-income security promises to pay to the holder annually, expressed as a percentage of the par value.
Interest-Rate Risk
Interest-Rate Risk refers to the risk of investment value changing due to fluctuations in the absolute level of interest rates, which can negatively affect fixed-income securities.
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