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Response Of Long-Term Interest Rates To Overnight Interest Rates In The United States, Charles Kweku Konadu-Adjei, Roger W. Mayer, Wen-Wen Chien
Response Of Long-Term Interest Rates To Overnight Interest Rates In The United States, Charles Kweku Konadu-Adjei, Roger W. Mayer, Wen-Wen Chien
Walden Faculty and Staff Publications
The behavior of the long-term interest rates is a practical problem for private and public organizations. Organizations need to estimate interest rates for purposes of assigning value to long-term obligations such as defined benefit plans and long-term leases and making decisions related to long term capital purchases. The purpose of this study was to analyze the determinants of long-term interest rates in the United States, using 352 quarterly time series data points extending from 1999 to 2009. This study examines how a change in overnight interest rates, budget deficit, Gross Domestic Product (GDP), inflation, and net capital inflow impact on …