This week included an overview of interest rates and the role it has in valuing
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This week included an overview of interest rates and the role it has in valuing assets. Interest rates quoted are typically based on numerous factors including the economic environment, monetary and fiscal policy, and risk. Many financial products will use Treasury rates to help determine the interest rate. The 3-month T-bill or 10-year Treasury can influence rates on auto, student, and home loans (mortgages).
Read the following information about yield curves and interest rates: What Is a Yield Curve? link: https://www.fidelity.com/learning-center/investment-products/fixed-income-bonds/bond-yield-curve
For this discussion board, provide insight into your thoughts about interest rates and the yield curve. Specifically, include your thoughts regarding the following questions:
What does it mean that interest is considered the “opportunity cost” of capital?
What does the current yield curve look like? Is it upward sloping, downward sloping, or flat? You may want to consider Yahoo!Finance, Bloomberg, or CNBC
Why are payments for a 15-year mortgage less than two times a 30-year mortgage (36 month auto loan less than two times a 72 month note)?