Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 18P
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Question
can you explain this in detailed please also the graph
![SHORT- & LONG-TERM INTEREST
RATES
Short- and long-term interest rates generally move in the same
direction
Short-term rates tend to be more volatile and lower than long-
term rates
Figure 5.4 Short- and Long-Term Interest Rates
20
18
16 F
14E
Long-term
(10 Year)
Interest Rate
4
Short-term
(3 Мonth)
2
Interest Rate
1956
1960
1964
1968
1972
1976
1980
1984
1988
1992
1996
2000
2004
2008
2012
Date
2.
6.
Interest Rate (Percent)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Facf818dd-7c95-4260-ac81-a47e3ccd2916%2Fba36def8-2844-42cb-afba-f8e0a3efac34%2Frd5nm7_processed.png&w=3840&q=75)
Transcribed Image Text:SHORT- & LONG-TERM INTEREST
RATES
Short- and long-term interest rates generally move in the same
direction
Short-term rates tend to be more volatile and lower than long-
term rates
Figure 5.4 Short- and Long-Term Interest Rates
20
18
16 F
14E
Long-term
(10 Year)
Interest Rate
4
Short-term
(3 Мonth)
2
Interest Rate
1956
1960
1964
1968
1972
1976
1980
1984
1988
1992
1996
2000
2004
2008
2012
Date
2.
6.
Interest Rate (Percent)
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