{"id":217023,"date":"2018-09-15T21:59:59","date_gmt":"2018-09-15T21:59:59","guid":{"rendered":"http:\/\/localhost\/wordpress\/index.php\/2018\/09\/15\/fin-571-week-1-dq-2\/"},"modified":"2018-10-24T08:58:59","modified_gmt":"2018-10-24T08:58:59","slug":"fin-571-week-1-dq-2","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/fin-571-week-1-dq-2\/","title":{"rendered":"FIN 571 Week 1 DQ 2"},"content":{"rendered":"<p>Assume that interest rates have increased substantially. Would this tend to increase or decrease \ufffd\tthe market value (meaning the price an investor in the firm&#8217;s paper is willing to pay) of a firm&#8217;s liabilities (relative to the book value of liabilities)?\u00a0\t\u00a0\tThis question is referring to a firm&#8217;s liability such as a bond or debenture that has been issued in the markets.\u00a0 What happens to the price an investor who is looking to purchase that bond or debenture is willing to pay if the market interest rate increases above the rate that the bond or debenture pays.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Assume that interest rates have increased substantially. Would this tend to increase or decrease \ufffd the market value (meaning the price an investor in the firm&#8217;s paper is willing to pay) of a firm&#8217;s liabilities (relative to the book value <a href=\"https:\/\/www.benedictsol.com\/blogs\/fin-571-week-1-dq-2\/\" class=\"read-more\">Read More &#8230;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-217023","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/217023","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=217023"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/217023\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=217023"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=217023"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=217023"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}