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Ba 3303 exam 2 solved - Study guides, Class notes & Summaries

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BA 3303 Exam 2 Solved 100% Correct

  • BA 3303 Exam 2 Solved 100% Correct

  • Exam (elaborations) • 7 pages • 2023
  • Interest rates - ANSWER--The cost of borrowing money stated as a percentage of the loan -A measure of what an investor can expect on a debt related investment. Basis point - ANSWER-Common term for a unit of interest rates in finance 1 basis point = .01% 100 basis points = 1.00% Nominal interest rate - ANSWER-Interest rate that is observed in the marketplace Risk free rate - ANSWER-Interest rate on a debt instrument with no default, maturity, or liquidity risks (Treasury securities ar...
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