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As an investor, would you want to buy a bond at a discount or premium? Explain the reasoning behind your choice.
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- Explain whether it is better for an investor to buy a discount bond and pay a price below itsface value or a premium bond and pay a price above the face value. Include in your discussionan explanation of when a bond is at discount or premium and why?Will you choose to invest in bonds if you are an investor? Why?How does one determine the required rate of return of a bond, the cash flows of a bond and the value of a bond? How do you determine if a bond is a good investment? Are long-term bonds riskier than short-term bonds? Explain and Discuss.
- . What is interest rate risk and what is the relation between interest rate risk and callable bonds. Explain with the help of an example of your own choice.What are the advantages and disadvantages of buying bonds directly?Why does a bond issuer would use a call feature and then discuss the investor’s pricing of a bond with a call feature?
- What is interest rate risk, and how does it relate to callable bonds? Explain using an example of your own choosing.When might a bondholder use a convertibility feature?Which of the following is the best explanation of what the call premium is? Group of answer choices The amount above the face value an investor must pay to purchase the bond. The additional amount above the face value that the company must pay to repay the bond early. The additional amount above the market price that a company must pay to repay the bond early. The amount above the market price that an investor must pay to purchase the bond.