{"id":95437,"date":"2018-02-08T21:17:09","date_gmt":"2018-02-08T21:17:09","guid":{"rendered":"https:\/\/essay-pool.com\/in-the-early-1980s-interest-rates-on-long-term-debt-were-at-remarkable-levels-above-15-with-some-even-higher-within-a-decade-rates-had-dropped-precipitously-i-have-a-couple-of-questions\/"},"modified":"2017-10-13T09:05:43","modified_gmt":"2017-10-13T09:05:43","slug":"in-the-early-1980s-interest-rates-on-long-term-debt-were-at-remarkable-levels-above-15-with-some-even-higher-within-a-decade-rates-had-dropped-precipitously-i-have-a-couple-of-questions","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/in-the-early-1980s-interest-rates-on-long-term-debt-were-at-remarkable-levels-above-15-with-some-even-higher-within-a-decade-rates-had-dropped-precipitously-i-have-a-couple-of-questions\/","title":{"rendered":"In the early 1980s, interest rates on long-term debt were at remarkable levels \u2013 above 15% with some even higher. Within a decade, rates had dropped precipitously. I have a couple of questions about that:"},"content":{"rendered":"<p>In the early 1980s, interest rates on long-term debt were at remarkable levels \u2013 above 15% with some even higher. Within a decade, rates had dropped precipitously. I have a couple of questions about that:1.What would the effect of a decline in interest rates on those instruments have on their price <\/p>\n<p>2.What impact would that decline have on other financial instruments  (Mortgages, Money Market Instruments, Stock)<\/p>\n<p>3.What does the change in prices after a significant change in interest rates say about the relationship of price and interest rates <\/p>\n<p>4.Most of the bonds that had been issued in the early 1980s were no longer on the market by the mid-1990s. Why do you suppose that is <\/p>\n<p>What is arbitrage . There is some controversy about whether or not arbitrage has a destabilizing effect on exchange rates. Does arbitrage have a destabilizing effect on exchange rates or doesn\u2019t it  Please back up your opinion.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the early 1980s, interest rates on long-term debt were at remarkable levels \u2013 above 15% with some even higher. Within a decade, rates had dropped precipitously. I have a couple of questions about that:1.What would the effect of a <a href=\"https:\/\/www.benedictsol.com\/blogs\/in-the-early-1980s-interest-rates-on-long-term-debt-were-at-remarkable-levels-above-15-with-some-even-higher-within-a-decade-rates-had-dropped-precipitously-i-have-a-couple-of-questions\/\" class=\"read-more\">Read More &#8230;<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-95437","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/95437","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\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=95437"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/95437\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=95437"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=95437"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=95437"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}