A case of interest rates rise, but bond prices fell.
Interest rate changes impact on bond prices in the different economic conditions.
Base interest rate raising when uneasily economic conditions can getting decline in market interest rates.
When market interest rates decrease bond prices has increases.
Therefore, when interest rates rise, sometimes the price of bonds rises.
In addition
interest sector, the domestic bank still depends on interest income excessively. Under globalized market, Korean banks can’t help but fall behind if they fail to improve their earning structure. So we’re going to find out the problem of Korean banks and their earning structure by comparing with non-Korean banks and, we will find out how Korean banks can be the real global bank.
Ⅱ. Earni
interested in “Inventory valuation”. So, we are going to say the result of what we discussed and thought.
1. SK Energy’s principal activities
The company operates a diverse sales and distribution network for both domestic and international operations. The network includes domestic and overseas subsidiaries, affiliates, such as SK Networks and SK E&S, local retail outlets and SK-bran
Realized Return
We invested government bond.
- In UK
Rate of government bond UK(10.26)=3.7%
<10.26.2009> <11.27.2009>
$1000/1.6324 = £612.6 £22.6662 * 1.6511
£612.6 * 0.037=£ 22.6662 = $37.424
∴ Realized Return = $37.424
Return (Domestic Investment)
We invested government bond.
- In USA
Rate of government
U.K. and U.S.
United Kingdom Net export > United States Net export
So, good.
- Interest Rate
1. United Kingdom
In October 2009, United Kingdom interest rate is 0.5%.
-Current UK Interest Rate: 0.5%
-Households have reduced their spending substantially .
-CPI inflation fell to 1.1%
-The quantitative easing program was boosted by £25bn to £200bn .