台中央大学币银行学MBChapter 4.pptVIP

Chapter 4 Understanding Interest Rates Purposes In this chapter we introduce the yield to maturity, the most accurate measure of interest rates, and alternative less accurate ways in which interest rates are quoted. We also discuss the rate of return of holding bonds, and distinguish between the real and nominal interest rate. Measuring Interest Rates According to the method of repaying the debt and interests, the debt instruments can be classified into four types: simple loan, fixed-payment loan, coupon bond, and discount bond. 1. Simple Loan An amount of funds (principal) that must be