ACCT 201 Lecture Notes - Lecture 9: Nominal Interest Rate, Real Interest Rate, Cusip
Document Summary
Please complete and submit prior to the commencement of class. does this imply about the future direction of interest rates (i. e. , higher or lower, relative to current short term rates. If investors expect interest rates to rise, the 2 year rate must be higher than the 1 year rate today, and that means the yield curve must have slope upward. Nominal interest rate- stated interest rate/coupon rate of bond that does not account for inflation. Describe it in your own words: please scan the (cid:498)wku general receipts refunding bond (cid:884)(cid:882)(cid:883)6(cid:499) document, found in cpa #(cid:883)(cid:882), under (cid:498)assignments(cid:499) in blackboard. Bond indenture is a legal document that defines what rights the bondholders have, and the duties that the corporation has to bondholders, such as paying taxes, and maintaining accounting records in accordance to gaap. A restrictive provision (operating and financial constraint) that protects bondholder against increases in borrower risk through retiring bonds prior to their maturity dates by making payments.
