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Identify and discuss the risks which affect the returns of the bond investor .Include relevent illustrations
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- different types of risk that bond investors and issuers face, and discuss how a bond’s terms and collateral can be changed to affect its interest rateExplain the principle of immunization when used with a bond portfolio. Explain how these bond risk components interact to immunize a bond portfolio.Which bond risk components interact to make immunization successful? Explain how these bond risk components interact to immunize a bond portfolio.
- Explain why yields, investment objectives, risk profiles, knowledge, and timing the market serve as guidelines in buying bonds. Include examples.Define debt securities and equity securities. Include their similarities and differences in your discussion.Explain the principle of immunization when used with a bond portfolio. a. What is bond portfolio immunization attempting to achieve? b. How is bond portfolio immunization achieved? c. Which bond risk components interact to make immunization successful? i. Explain how these bond risk components interact to immunize a bond portfolio.
- Explain the principle of immunization when used with a bond portfolio. What is bond portfolio immunization attempting to achieve? How is bond portfolio immunization achieved? Which bond risk components interact to make immunization successful? Explain how these bond risk components interact to immunize a bond portfolio.Discus factors affecting value of a bondDescribe the process to record a bond a face value, discount value and premium?