Insurance and Risk Management Paper 24

Standard and Poor’s bond rating agency reduces your firm’s bond rating from AA+ to AA. The likely effect on your firm’s bonds will be:

Suppose that the Bank of England cuts interest rates by 0.5 per cent. Other things being equal, the change in the price of shares in Q.7 will be:

Suppose that three year interest rates rise from 5 per cent to 6 per cent while one year rates remain at 3 per cent. This suggests:

The ’clean price’ of a bond is:

The ability of central banks to influence short-term interest rates rests upon:

The banking systems of Nordic countries are remarkable for their:

The Caisses d’Epargne are:

The conversion of building societies to PLC status allowed them:

The demand for insurance derives from the fact that people want:

The essential characteristic that any monetary asset must possess is: