LIU Finance Discussion

Based upon this module’s required reading and the background information given here, form an initial post covering the following four issues:

Section 1

• Based upon this module’s required reading, explain briefly how interest rate movements affect the valuation of any one debt or equity asset traded in financial markets.

Section 2

• For the purchaser of mortgage-backed securities (e.g., financial institutions, intermediaries, or investors) or any other security that has an increased risk of default, identify one risk that you think is possible and explain your conclusion.

Section 3

• Comment on any one aspect of the connection between Wall Street and Main Street.