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Essay

Economic Functions of Money, Risk, and Cost

Essay specific features

 

Issue:

Business

 

Written by:

Allen D

 

Date added:

September 25, 2013

 

Level:

University

 

Grade:

A

 

No of pages / words:

6 / 1670

 

Was viewed:

6555 times

 

Rating of current essay:

 
Essay content:

The damage has affected the whole market and not just those stocks associated with the financial sectors. Firm risk is risk that affects only a single company. Imagine if your IRA or 401K held only Enron. For bonds the risks are default risk and interest rate risk. Default risk is the risk of a corporation, municipality, or household not being able to repay the obligated principle and or interest associated with a bond or mortgage...
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Default risk is the risk of a corporation, municipality, or household not being able to repay the obligated principle and or interest associated with a bond or mortgage. Interest rate risk is the risk of the interest changing while you are already committed to a bond. For example, if you acquire a bond paying a 5% interest rate there is risk that the market interest rate may go up and new bonds will be issued at 6%...
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