lOMoARcPSD| 50205883
According to the loanable funds theory, market interest rates are determined by the factors that
control the supply of and demand for loanable funds
According to the loanable funds theory, market interest rates are determined by the factors that
control the supply of and demand for loanable funds
According to the loanable funds theory, market interest rates are determined by the factors that
control the supply of and demand for loanable funds
1. According to the loanable funds theory, market interest rates are determined by the factors
thatcontrol the supply of and demand for loanable funds. (Theo lý thuyết quỹ cho vay, lãi suất
thị trường được xác định bởi các yếu tố kiểm soát cung và cầu về vốn vay) -> True
2. The Fisher effect states that the: nominal interest rate equals the expected inflation rate plus the real rate of interest.
3. If the real interest rate was negative for a period of time, then: actual inflation was greater than
the nominal interest rate (Nếu lãi suất thực âm trong một khoảng thời gian, thì lạm phát thực
tế lớn hơn lãi suất danh nghĩa)
4. If inflation is expected to decrease, then the equilibrium interest rate will decrease
5. If inflation turns out to be lower than expected savers benefit.
6. If the economy weakens, there is downward pressure on interest rates. If the Federal Reserve
increases the money supply there is downward pressure on interest rates (assume that
inflationary expectations are not affected) (Nếu nền kinh tế suy yếu, sẽ có áp lực giảm lãi suất.
Nếu Cục Dự trữ Liên bang tăng cung tiền thì sẽ có áp lực giảm lãi suất (giả sử rằng kỳ vọng
lạm phát không bị ảnh hưởng))
7. What is the basis of the relationship between the Fisher effect and the loanable funds theory?
(Cơ sở của mối quan hệ giữa hiệu ứng Fisher và lý thuyết quỹ cho vay là gì?)
-> the saver’s desire to maintain the existing real rate of interest (mong muốn của người tiết kiệm
để duy trì lãi suất thực tế hiện có)
8. If the real interest rate was stable over time, this would suggest that there is ______
relationship between inflation and nominal interest rate movements. (Nếu lãi suất thực tế ổn
định theo thời gian, điều này sẽ gợi ý rằng có ______ mối quan hệ giữa lạm phát và biến động
lãi suất danh nghĩa.) -> positive Chapter 3:
1. In general, securities with favorable characteristics will offer lower yields. (Nói chung, chứng
khoán có đặc điểm thuận lợi sẽ mang lại lợi suất thấp hơn.)
2. Default risk is likely to be highest for: BBB corporate securities.
3. Some financial institutions such as commercial banks are required by law to invest only in investment-grade bonds. lOMoARcPSD| 50205883
4. Credit ratings are most commonly used to indicate which financial institutions have available
fundsthat they can lend to borrowers. -> True
5. If a security can easily be converted to cash without a loss in value, it is liquid.
6. Securities that offer lower liquidity will offer a higher yield to be preferred. (Chứng khoán có
tính thanh khoản thấp hơn sẽ có lợi suất cao hơn được ưu tiên.)
7. If all other characteristics are similar, taxable securities would have to offer a higher
beforetax yield than tax-exempt securities. (Nếu tất cả các đặc điểm khác giống nhau, chứng
khoán chịu thuế sẽ phải mang lại lợi suất trước thuế cao hơn chứng khoán được miễn thuế)
8. Assume an investor’s tax rate is 25 percent. The before-tax yield on a security is 12
percent.What is the after-tax yield?
After tax yield on security = Pre tax yield * (1 – Tax rate)
Or i tax free = i tax * (1 – Tax rate)
After tax yield on security = Pre tax yield * (1 - Tax rate) = 12% * (1 - 25%) = - > 9%
9. An investor’s tax rate is 30 percent. What must the before-tax yield on a security be to have
anafter-tax yield of 11 percent? Pre tax yield = = = = 0.1571 10.
A firm in the 35 percent tax bracket is aware of a tax-exempt security that is paying a
yield of7 percent. To match this yield, taxable securities must offer a before-tax yield of Pre tax yield = = = = 0.108 11.
Holding other factors such as risk constant, the relationship between the maturity and
annualized yield of securities is called the term structure of interest rates. 12.
Interest income from municipal bonds is exempt from state taxes but is subject to federal
taxes (Thu nhập lãi từ trái phiếu đô thị được miễn thuế tiểu bang nhưng phải chịu thuế liên bang)
-> False. Interest payments on municipal bonds are exempt from federal income taxes. (Các
khoản thanh toán lãi cho trái phiếu đô thị được miễn thuế thu nhập liên bang.) 13.
If shorter term securities have higher annualized yields than longer term securities, the
yield curve is downward sloping. (Short term is higher than long term) 14.
Assume that annualized yields of short-term and long-term securities are equal. If
investors suddenly believe interest rates will increase, their actions may cause the yield curve to become upward sloping. 15.
Within the category of capital market securities, municipal bonds have the lowest before-
tax yield, and their after-tax yield is typically above that of Treasury bonds from the
perspective of investors in high tax brackets (Trong danh mục chứng khoán thị trường vốn,
trái phiếu đô thị có lợi suất trước thuế thấp nhất và lợi suất sau thuế của chúng thường cao hơn
trái phiếu kho bạc từ quan điểm của các nhà đầu tư trong khung thuế cao) lOMoARcPSD| 50205883 16.
The yield offered on a debt security is positively related to the prevailing risk-free rate
and positively related to the security’s risk premium. 17.
The theory for the term structure of interest rates that says the shape of the yield curve is
determined solely by expectations of future interest rates is called the pure expectations theory. 18.
Assume investors are indifferent among security maturities. Today, the annualized 2-year
interest rate is 12 percent, and the 1-year interest rate is 9 percent. What is the forward rate
according to the pure expectations theory?
=> Forward rate = (1 + 0.12)2/(1+0.09) - 1 => (1.2544/1.09) - 1 => 0.15083 19.
Assume the yield curve is flat. If investors flood the short-term market and avoid the
longtermmarket, they may cause the yield curve to -> upward 20.
According to pure expectations theory, if interest rates are expected to decrease, there
will be __________ pressure on the demand for short-term funds by borrowers and
__________ pressure on the demand for long-term funds issued by borrowers -> upward; downward 21.
The degree to which the Treasury’s debt management policy could affect the term
structure of interest rates is greatest if maturity markets are segmented 22.
Assume that today, the annualized two-year interest rate is 12 percent, and the one-year
interest rate is 9 percent. A three-year security has an annualized interest rate of 14 percent.
What is the one-year forward rate two years from now? lOMoARcPSD| 50205883 23.
Assume that a yield curve is influenced by interest rate expectations and a liquidity
premium.Assume the yield curve is initially flat. If liquidity suddenly was no longer
important, the yield curve would now have a ______ (assuming no other changes) A) slight downward slope 24.
According to the liquidity premium theory, the expected yield on a two-year security will
be greater than the expected yield from consecutive investments in one-year securities (Theo
lý thuyết phần bù thanh khoản, lợi tức kỳ vọng đối với chứng khoán hai năm sẽ lớn hơn lợi
suất kỳ vọng từ các khoản đầu tư liên tiếp vào chứng khoán một năm.) 25.
Assume that the current yield on one-year securities is 6 percent, and that the yield on a
twoyear security is 7 percent. If the liquidity premium on a two-year security is 0.4 percent,
then the one-year forward rate is lOMoARcPSD| 50205883 26.
If the liquidity premium exists, a flat yield curve would be interpreted as the market
expecting______ in interest rates. -> a slight decrease 27.
The theory of the term structure of interest rates, which states that investors and
borrowers choosesecurities with maturities that satisfy their forecasted cash needs, is the
segmented markets theory. (Lý thuyết về cấu trúc kỳ hạn của lãi suất, trong đó nói rằng các
nhà đầu tư và người vay chọn chứng khoán có kỳ hạn đáp ứng nhu cầu tiền mặt dự kiến của
họ, là lý thuyết thị trường phân đoạn) 29.
According to the segmented markets theory, if most investors suddenly preferred to
invest in short-term securities and most borrowers suddenly preferred to issue long-term
securities there would be upward pressure on the price of short-term securities 30.
According to segmented markets theory, if investors have mostly short-term funds
available and borrowers want long-term funds, there would be upward pressure on the supply of
shortterm funds provided by investors and upward pressure on the yield of long-term securities.
Theo lý thuyết thị trường phân khúc, nếu các nhà đầu tư có hầu hết các nguồn vốn ngắn hạn và
người đi vay muốn có các nguồn vốn dài hạn, thì sẽ có áp lực tăng nguồn cung vốn ngắn hạn do
các nhà đầu tư cung cấp và áp lực tăng đối với lợi suất của chứng khoán dài hạn. 31.
Assume that the Treasury bond yield today is 2% higher than it was one year ago. Also
assume that the credit (default) risk premium of an A-rated bond declined by 0.4% since one
year ago. A newly issued A-rated bond will likely offer a yield today that is greater than the
yield that was offered on an A-rated bond issued one year ago Giả sử rằng lãi suất trái phiếu kho
bạc hiện nay cao hơn 2% so với một năm trước. Cũng giả định rằng phần bù rủi ro tín dụng (mặc
định) của trái phiếu xếp hạng A giảm 0,4% kể từ một năm trước. Một trái phiếu xếp hạng A mới
phát hành có thể sẽ mang lại lợi suất ngày hôm nay cao hơn lợi tức được đưa ra trên một trái
phiếu xếp hạng A phát hành một năm trước 32.
In some time periods there is evidence that corporations initially financed long-term
projects with short-term funds. They planned to borrow long-term funds once interest rates were
lower. This specifically supports the ______ for explaining the term structure of interest rates.
Trong một số khoảng thời gian, có bằng chứng cho thấy ban đầu các tập đoàn tài trợ cho các dự
án dài hạn bằng nguồn vốn ngắn hạn. Họ đã lên kế hoạch vay vốn dài hạn khi lãi suất thấp hơn.
Điều này đặc biệt hỗ trợ ______ để giải thích cấu trúc kỳ hạn của lãi suất -> expectations 33.
According to expectations theory, the sudden expectation of lower interest rates in the
future will cause a small supply of short-term funds provided by investors, and a large supply of
longterm funds. Theo lý thuyết kỳ vọng, kỳ vọng đột ngột về lãi suất thấp hơn trong tương lai sẽ
gây ra một lượng nhỏ nguồn cung vốn ngắn hạn do các nhà đầu tư cung cấp và một lượng lớn
nguồn cung vốn dài hạn.