Spot Rates, Forward Rates, and Interest-Rate Differentials

1972 ◽  
Vol 4 (2) ◽  
pp. 375 ◽  
Author(s):  
John Pippenger
Keyword(s):  
Interest Rate ◽  
Forward Rates ◽  
Interest Rate Differentials

scholarly journals Trends and determinants of raising ECBs in Indian Context

2021 ◽  
Vol 9 (7) ◽  
pp. 01-08
Author(s):  
Ramakant Shukla
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Least Squares Method ◽  
Control Measures ◽  
Capital Control ◽  
Global Liquidity ◽  
Robust Least Squares ◽  
The Exchange Rate ◽  
The Cost ◽  
Interest Rate Differentials

This study examines the effect of capital control measures initiated during the last two decades in terms of all-in-cost ceilings and enhanced limits on ECB in India over the sample period 2004Q1 to 2020Q2. Using global liquidity, the exchange rate between INR/USD, imports and interest rate differentials as control variables and changes in capital control measures from 2008 to 2011 in the all-in-cost ceiling, and changes in the enhanced limits on ECBs from USD 500 million to USD 750 million under the automatic route in 2012, regression analysis of three ECB series show interesting results. Using Robust Least Squares method, we document that (1) the successive increment in all-in-cost ceilings on ECB from 2008 to 2011 is inducing ECBs to flow, indicating that Indian firms benefit more than they pay due to increase the cost for ECBs having maturities 3<5 years. However, such capital control measures are not effective on ECBs having maturities >5 years.  (2) The effect of the enhanced limits on ECBs from USD 500 million to USD 750 million under the automatic route in 2012 has a pronounced impact on ECB, averaging 1602.1 USD million per quarter. We observed that CCAs in India are initiated in response to the volatility of the exchange rate and global liquidity, imports, and interest rate differentials are significant variables in India's required capital control actions.

Bonds and Interest Rates

2019 ◽  
pp. 257-271
Author(s):  
Tomas Björk
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Rate Theory ◽  
Forward Rates ◽  
Depth Study ◽  
Basic Concepts ◽  
Floating Rate

In this chapter the reader is introduced to the basic concepts of interest rate theory. Starting with a market for zero coupon bonds we define the relevant interest rates such as the short rate, the spot rates, and the forward rates. There is an in-depth study of the relations between the dynamics of these rates, and we also discuss some more applied topics as fixed coupon bonds, floating rate bonds, yields, duration, and convexity.

Three Factors, Interest Rate Differentials and Stock Groups

1981 ◽  
Vol 36 (2) ◽  
pp. 323-335 ◽  
Author(s):  
H. RUSSELL FOGLER ◽  
ROSE JOHN ◽  
JAMES TIPTON
Keyword(s):  
Interest Rate ◽  
Interest Rate Differentials
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