A case of interestrates rise, but bond prices fell.
Interestrate changes impact on bond prices in the different economic conditions.
Base interestrate raising when uneasily economic conditions can getting decline in market interestrates.
When market interestrates decrease bond prices has increases.
Therefore, when interestrates rise, sometimes the price of bonds rises.
In addition
U.K. and U.S.
United Kingdom Net export > United States Net export
So, good.
- InterestRate
1. United Kingdom
In October 2009, United Kingdom interestrate is 0.5%.
-Current UK InterestRate: 0.5%
-Households have reduced their spending substantially .
-CPI inflation fell to 1.1%
-The quantitative easing program was boosted by £25bn to £200bn .
U.S
- Current US InterestRate: 0.25%
- Household spending remains constrained by lower housing wealth.
-CPI inflation fell to 0.20%
-The mortgage crisis in the US is hurting the overall economy
U.K
-Current UK InterestRate: 0.5%
-Households have reduced their spending substantially .
-CPI inflation fell to 1.1%
-The quantitative easing program was boosted by £25bn to £20
rate = 10%
B. baht-denominated notes are available in increments of TB50,000
∴ TB434,782,609 ÷ TB50,000 = 8,696 baht-denominated notes
coupon rate = 15% (due to its unfavorable economic conditions)
- Blades uses the CF generated by the Thai subsidiary
to pay the interest on the notes and repay the principal in 5 years(maturity)
- The yen is expected to be appreciated (vs.
책정되어 있다.
이와 같은 환율제도를 Pegged Exchange rate system(페그제)라고 하며 1997년 아시아국가의 위기 전에는 태국, 베트남 등 많은 아시아 국가들이 사용했으나 현재는 홍콩만 사용하고 있다. 홍콩은 자국화폐 HK$의 다섯배 이상의 외화보유고로 페그제를 안정적으로 유지시킬 수 있었기 때문이다.