RATES, BOND PRICES, AND THE TERM STRUCTURE

There is a very close connection between bond prices and interest rates. We will focus on interest rate calculated from prices of traded US government securities

THE CYCLICAL VOLATILITY OF INTEREST RATES

The variability short-term and long-term interest rate is a prominent feature of the economy. Interest rates change in response to a variety of economic events, such as changes in federal policy, crises in domestic and international financial markets, and changes in the prospects for long term economics growth and inflation. However, economic events such as these tend to be irregular.

WHAT DETERMINES INTEREST RATE VOLATILITY

The  post  war data  imply that prices  of  long term  discount  bonds  are more variable than those of short term discount bonds and that long term interest

rates, measured by yield-to-maturity, are less volatile than short term rate. In addition, we find that short-term interest rate are procyclical, while lay-term interest rates vary little with current output. What economic factors influence interest rate variability? If we can isolate some economic determinants of the levels of interest rates, and bond prices, we will b e well on our way to funding determinants of this variability.

MEASURING THE VOLATILITY OF INTEREST RATES

 

We will measure interest rate volatility using a statistic called the standard deviation.  The  standard  deviation.  The  standard  deviation  measure  how dispersed a variable is around its average valve, If the standard deviation is high, observations on a variable tend to be for away from the variable tend to be clustered around the average valve. Therefore, as the standard deviation increases, there is a greater chance that will see large changes in the valve of the variables.

EFFECTIVE MANAGEMENT AND LEADERSHIP OF EMPLOYEE IN THE WORK PLACE part 2

An effective manager should have the following skills:

1.    CREATIVE PROBLEM SOLVING SKILLS: (1) Describing and analyzing a problem, (2) Identifying causes of a problem, (3) Developing creative options and choosing the best course of action, and (4) Implementing and evaluating effective and efficiency of the decision.

2.    COMMUNICATION SKILL: (1) Listening skills, (2) Presentation skills, (3) Feedback Skills, (4) Report writing skills.

THE IMPACT OF INTEREST RATE ON INVESTMENT DECISION IN NIGERIA. AN ECONOMETRIC ANALYSIS

CHAPTER ONE
INTRODUCTION

1.1 Background of the Study

Investment is the change in capital stock during a period. Consequently, unlike capital, investment is a flow term and not a stock term. This means that capital is measured at a point in time, while investment can only be measure over a period of time.

Investment plays a very important and positive role for progress and prosperity of any country. Many countries rely on investment to solve their economic problem such as poverty, unemployment etc (Muhammad Haron and Mohammed Nasr (2004).

Interest rate on the other hand is the price paid for the use of money. It is the opportunity cost of borrowing money from a lender to finance investment project. It can also be seen as the return being paid to the provider of financial resources, for going the fund for future consumption. Interest rates are normally expressed as a percentage rate. The volatile nature of interest is determined by many factors, which include taxes, risk of investment, inflationary expectations, liquidity preference, market imperfections in an economy etc.

THE IMPACT OF INTEREST RATE ON INVESTMENT DECISION IN NIGERIA. AN ECONOMETRIC ANALYSIS (1981-2010)

ABSTRACT

The focus of this research work is based on the impact of interest rate on investment decision in Nigeria. An econometric analysis between the periods of 1981-2010. Secondary data obtained from the central bank of Nigeria (CBN) statistical bulletin (volume 21) DEC 2010. Date was collected and empirical analysis made. To achieve these objective multiple regression was used in analyzing the data that the impact of interest rate on Nigeria prior to interest rate regulation in 1.986 and serve as guide to how interest rate can be fixed to enhance effective accumulation of savings that can channel to investment. Policy recommendation Government should in massively embarks on large-scale agriculture, manufacturing industrialization e.t.c and equally encourages small and medium scale enterprise (SMES). Public private partnership (ppp) should also be encouraged by government for efficient and effective production.