buy securities on the open market. |
open market operations. |
$ 22,500,000 |
expenditures to fall. |
the price of money. |
The level of income |
a naive forecasting model. |
nominal rates include the real rate of interest plus past annual inflation rates. |
5% |
The higher the coupon rate, the shorter the duration. |
a discount. |
Bonds vary directly with interest rates. |
will have greater price variability, given a change in interest rates, relative to bond A. |
coupon payments. |