MonetaryFinance货币金融学.doc

Monetary Finance 货币金融学 ●Interest Rate 1.Definition The nominal interest rate is the amount,in percentage terms,of interest payable. The real interest rate, which measures the purchasing power of interest receipts, is calculated by adjusting the nominal rate charged to take inflation into account. The real interest rate=nominal interest rate-the actual inflation rate The Risk Structure of Interest Rate 利率的风险结构 Bonds with the same maturity（期限） have different interest rates due to: credit risk; liquidity; tax considerations. Credit risk违约风险:probability that the issuer of the bond is unable or unwilling to make interest payments or pay off the face value.More credit risk is,less atractive to the investors is.So,the issuers make the interest rate higher to make up the high credit risk,so called risk compensation风险补偿. Liquidity流动性:the relative ease with which an asset can be converted into cash.It will influence the cost of selling a bond.Investors always prefer the high liquidity asset.So,the higher liquidity the bond is,the lower interest rate is. Income tax considerations税收因素:Bond holders concern about the real interest rate after taxation.The higher the bond’s tax rate is,the lower the interest rate before taxation is. 3.The Term Structure of Interest Rate 利率的期限结构 Bonds with same credit risk,liquidity,and tax characteristics may have different interest rates because the time remaining to maturity is different. Yield curve:a plot of the yield on bonds with differing terms to maturity but the same risk, liquidity and tax considerations.It shows the relationship between the yield and maturity. --Upward-sloping:long-term rates are above short-term rates --Flat:short- and long-term rates are the same --Inverted:long-term are below short-term rates There are two facts: Interest rates on bonds of different maturities move together over time. Interest rates on long-term bonds are usually higher than interest rates on short-term bonds. Theories to explain the f