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A short term interest rate occurs over a short period of time. A long term interest rate occurs over a long period of time.

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15y ago

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What is the impact of long convexity on bond prices in a changing interest rate environment?

Long convexity in bonds refers to the relationship between bond prices and changes in interest rates. In a changing interest rate environment, bonds with long convexity are more sensitive to interest rate movements compared to bonds with short convexity. This means that when interest rates rise, the price of bonds with long convexity will decrease more than bonds with short convexity, and vice versa.


What is the relationship between long-run average cost curve and short-run average cost curve?

what is the relationship between long run average cost curve and short run average cost curve?


Explain the relationship between short-term goals and long-term goals?

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What kind of relationship you postulate between short-run and long run average cost curves when these are not U shaped?

The type of relationship that you postulate between short-run and long-run average cost curves that is not U shaped is the external limiting relationship.


Discuss the relative volatility of short- and long-term interest rates?

short- and long-term interest rates usually move in the same direction. Yield curve is often upward, so, long-term interest rates are usually higher than short-term interest rates. short-term interest rates are often more fluctuating than long-term rates.


What kind of relationship would you postulate between short-run and long average cost curves when these are not U-shaped as suggested by the modern theories?

what kind of relationship would you postulate between short run and long run average cost curves when these are not u shaped as suggested by the modern theories.


What kind of relationship would you postulate between short-run and long-run average cost curves when these are not you-shaped as suggested by the modern theories?

what kind of relationship would you postulate between short run and long run average cost curves when these are not u shaped as suggested by the modern theories.


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What is the difference between a short- and long-term goal?

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Is it better to get a high interest short term loan or a low interest long term loan?

It depends on how long you need the loan for and how long it would take for you to complete the payment. But in general a low interest long term loan means a higher interest payment over the life of the loan where as a high interest short term loan means less amount of interest payment over the life of the loan.


What are the precautions of short and long term interest rates?

The precaution of short term interest rate is that the rate tends to be higher due to its term. Long term interest rate, on the other hand, tends to be lower, but since it will take a long time to pay off debt, in the long run, the accumulated interest rate becomes much more.

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