Assignment
1. Why are asset prices and interest rates inversely related? Utilize at least one of the Four Simple Types of Credit Market Instruments to rationalize your argument. What is important to keep in mind about the idea of the "present discounted value" when it comes to financial decision-making?
2. Describe the idea of "Financial Information Product (FIP)." Explain how the competitive operations of the institutions of the banking industry and financial markets create Financial Information Product, and why this is important? How does the rational investor acquire and discriminate between various packages of FIP which are available?
3. Describe Fisher equation and the basic concept.
4. Summary Efficient or effective market what is the difference between interest rate and nominal interest rate. Explain?