Debt to Equity levels may become ever more important as investors try to estimate the cost to various businesses of their ongoing borrowing requirements. It is all very well interest rates in 2009 being around 0-1% but corporate bonds are still trading at around
The Fed's recent monetary policy has driven up the price of long-term government debt to very high levels. The corresponding extremely low interest rates are part of the government's efforts to breathe some life into the economy. However, if the Fed succeeds and the economy recovers, long term interest rates will have to increase drastically to keep inflation in check. This will cause a dramatic decline in bond prices. It is safe to say that a bubble has formed in long-term government debt.
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Interest rates are important for any business or for that matter any economy. Interest rate changes are one of the most market moving announcements in currency trading. Knowing how to calculate the interest rate differential between the two currencies in a currency pair is the most important thing for any currency trader. These interest rate differentials can act as leading indicators of future currency prices. click-bank








