SoCal
Hollywood
Yeah, tell em_516 that
. I think that University as a whole is easy.
. I think that University as a whole is easy.
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Acfi2080... (1 Viewer)
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hipsta_jess
Up the mighty red V
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Says he whose signature reads "Uni's gay"SoCal said:Yeah, tell em_516 that
SoCal
Hollywood
It can be gay and easy at the same time.
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lol but you CHOSE to do economics..mine is only a minor part of my degree, but compulsory..it can't be THAT easy if so many people are failing it right now! sooooooo can't wait for exams to be over and then economics is GONE!!baker182 said:Macro is fucking easy
SoCal
Hollywood
You are getting baker182 and I mixed up. I was the one who chose to do Macroeconomics II and Microeconomics II (which I am regretting having done by the way), not him. He has only done Macroeconomics I and Microeconomics I, which are both compulsory for him too.
. I was the one who chose to do Macroeconomics II and Microeconomics II (which I am regretting having done by the way), not him. He has only done Macroeconomics I and Microeconomics I, which are both compulsory for him too.
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SoCal
Hollywood
We do do the same degree, I just chose to do them and he didn't.
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PrincessSJ
Work. Inn. Buy Shoes
now you're confusing!
hipsta_jess
Up the mighty red V
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I'm guessing baker has to do them for his major and merethrond ('socal' just doesn't work) chose them as 'electives' of sorts?
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SoCal
Hollywood
Haha, I don't see where the confusion is coming from. We both do a B.Finance which has Macroeconomics I and Microeconomics I as core subjects. I then chose to do Macroeconomics II and Microeconomics II as electives.
P.S. SoCal is much better than Merethrond.
. We both do a B.Finance which has Macroeconomics I and Microeconomics I as core subjects. I then chose to do Macroeconomics II and Microeconomics II as electives.P.S. SoCal is much better than Merethrond
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I got a question. In chaper 4 question 7. in the solutions it says that an upwards yield curve are lower than the long term interest rates. But I throught an upwards yield curve refers to an increaseing short term rate, which is greater than the long term interest rate.
What the correct answer, can someone help?
What the correct answer, can someone help?
SoCal
Hollywood
Um, I think you need to read over what you just wrote, it doesn't make sense. Anyway, an upward sloping yield curve means that short-term interest rates are lower than long term interest rates for debt securities in the same risk class. According to the Expectations Theory, interest rates are set such that investors in debt securities can expect, on average, to achieve the same return over any future period, regardless of the term of the security in which they invest (remember the demonstrations in the lecture and in ACFI2070). Therefore, it doesn't matter whether the company raises debt by issuing short-term or long-term debt securities because on average they will still have to pay the same average interest rate per year over the period.
For example (this is overly simplified and does not take into account the compounding but it conveys the message), the company may need to invest for three years. The one year interest rate may be 5% p.a. or the three year interest rate 6% p.a.. The fact that the one year interest rate is 5% and the three year interest rate is 6% means that the market expects the interest rate to rise over the period. So, while the company could borrow at 5% for the first year, the second year they may have to borrow at 6% and the third at 7% (making an average of (5+6+7)/3 = 6% p.a. over the three years, just as the Expectations Theory would predict).
P.S. Do you have an answer to my question?
. Anyway, an upward sloping yield curve means that short-term interest rates are lower than long term interest rates for debt securities in the same risk class. According to the Expectations Theory, interest rates are set such that investors in debt securities can expect, on average, to achieve the same return over any future period, regardless of the term of the security in which they invest (remember the demonstrations in the lecture and in ACFI2070). Therefore, it doesn't matter whether the company raises debt by issuing short-term or long-term debt securities because on average they will still have to pay the same average interest rate per year over the period.For example (this is overly simplified and does not take into account the compounding but it conveys the message), the company may need to invest for three years. The one year interest rate may be 5% p.a. or the three year interest rate 6% p.a.. The fact that the one year interest rate is 5% and the three year interest rate is 6% means that the market expects the interest rate to rise over the period. So, while the company could borrow at 5% for the first year, the second year they may have to borrow at 6% and the third at 7% (making an average of (5+6+7)/3 = 6% p.a. over the three years, just as the Expectations Theory would predict)
.P.S. Do you have an answer to my question
?Sorry about that, i wote it at like 2am. Yes i understand now.SoCal said:Um, I think you need to read over what you just wrote, it doesn't make sense
For example (this is overly simplified and does not take into account the compounding but it conveys the message), the company may need to invest for three years. The one year interest rate may be 5% p.a. or the three year interest rate 6% p.a.. The fact that the one year interest rate is 5% and the three year interest rate is 6% means that the market expects the interest rate to rise over the period. So, while the company could borrow at 5% for the first year, the second year they may have to borrow at 6% and the third at 7% (making an average of (5+6+7)/3 = 6% p.a. over the three years, just as the Expectations Theory would predict)
P.S. Do you have an answer to my question
UGFighter
Member
Yeah mate, I do it... haven't stated studying yet.
How'd you go in the mid-sem?
How'd you go in the mid-sem?
didnt do it. How did you do? Had a look at the marks and it seemed there werent many that got real high.
Ive only been to 4 lectures for it, did easton say what would be in the exam apart from what was on blackboard. His lecture slides a pretty vague.
Ive only been to 4 lectures for it, did easton say what would be in the exam apart from what was on blackboard. His lecture slides a pretty vague.
UGFighter
Member
I scraped a pass with 56%, happy enough.
Dunno what he said if he did, I stopped going after week 8-9 or something... remember, he put the slide about China and the yuan up on bb in about week 1 or 2, saying it would be a question in the final exam. It's worth 20 marks, so 20% of your marks should be right there if you do the research for it...
surely we can scrape another ~30/80 or so to pass
Dunno what he said if he did, I stopped going after week 8-9 or something... remember, he put the slide about China and the yuan up on bb in about week 1 or 2, saying it would be a question in the final exam. It's worth 20 marks, so 20% of your marks should be right there if you do the research for it...
surely we can scrape another ~30/80 or so to pass
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SoCal
Hollywood
I am doing that subject next semester I think. I heard it is pretty hardcelcast said:
.Yeah question 1 doesnt seem that bad, all the stuff for that is on blackboard. The only problem is trying to remember it all.
ACFI3140 isnt actually to bad. However I just dont go to the lectures and didnt do much work for it. I think if you stayed on top of it through the year it'd be ok.
ACFI3140 isnt actually to bad. However I just dont go to the lectures and didnt do much work for it. I think if you stayed on top of it through the year it'd be ok.