Question 1

The interest rate is a critical component of determining the investment of the organization. The essence of having the interest rate determinants is to forecast whether the future investment will be viable or not. There are an expected increase in the levels of interest will increase in the next five years. The economic changes that might have led to the changes in the interest rate are attributed to the inflationary aspect. Additionally, the fundamental perspective is to focus on the changes in the economic variables of inflation and other external macroeconomic variables. The economic recession is likely to influence the interest rate level.

Question 2:

Using the Karma Score, I have known the credit score by disclose. To improve the credit score, one needs to put in place the appropriate mechanism that will assist in promoting values such as reducing the lending aspect by increasing the net income to support the future income.

Question 3

According to the bank rate data reveals the current rate is 4.62%. The rising of the interest rate affects the home mortgage because it makes the mortgage expensive and hence leading to higher cost of the home. However, the lower interest rate will also lead to a reduced rate of the loan

Question 4:

The interest rate is 2.25%   implies that the par value of $1000 and the market value of $950. This means that it sells at a discount which means that the interest rate will increase by holding and not try to buy more because the value will not be in line with the investment alternatives.