Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Q: What is investment-grade bond?
A: Bond is a financial instrument. Issuer issues bond to raise the fund and payback the amount at the…
Q: what does the bond rating depend on?
A: It is a credit rating which represents the creditworthiness of both the corporate and the government…
Q: What are the main advantages and disadvantages of            investing in bonds?
A: Bonds are debt instruments issued by an entity. The issuing entity can either be a corporate entity…
Q: Why are held-to-maturity securities treated differently from other investment securities?
A:
Q: What effect do interest rates have on bond prices? What are the underlying assumptions that go into…
A: Bond: Bond refers to debt security issued by the company from the debt investors to raise capital.…
Q: How are bonds amortized?
A: Bond Amortization: Over the course of the bond's existence, the principal (face value) of the loan…
Q: How do I calculate the market price of a bond?
A: Market price of a bond is the present value of future cashflows.
Q: . How is the value of a bond determined?
A: Bond valuation: It may be a method utilized to decide a given bond's hypothetical reasonable value.…
Q: c. Which yield might investors expect to earn on these bonds, and why?
A: Bond yield is the expected return on an invested bond. It is the discount rate which calculates its…
Q: How do interest rates affect bond valuations? What are the key assumptions in valuing a bond?
A: Bonds are the form of debt payable by the company. Interest rates on bonds to be paid is coupon…
Q: What is the relationship between interest rates and bond valuations? What are the fundamental…
A: A bond is borrowing security issued by the company to raise funds from the market by making an…
Q: Define bond yield to maturity. Why is it important?
A: YTM or Yield To Maturity is internal rate of return which is genrated by a bond that equates present…
Q: What are income bonds and indexed bonds?
A: The income bond is a type of debt instrument wherein the borrower is relied upon to pay just the par…
Q: How is the present value of a bond calculated?
A:
Q: immunization of a bond portfolio
A: Immunization is a risk-reduction approach that aligns asset and liabilities duration to protect…
Q: How does the carrying value of a bond gets amortized when selling it at discount?
A: The carrying value of bond represents the amount of Bond Face Value + unamortized premium (or )–…
Q: What is new issue bond?
A: The bond is a fixed income financial instrument that is issued by the government or by the companies…
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what is the difference between an investment grade bond and a junk bond?

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