what is the difference between an investment grade bond and a junk bond?

Q: What does a bond issue's "call" feature entail? What effect does the call feature have on bond…

A: This question deals with the "call" feature of a bond issuance entails and the call feature's effect…

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: In general, how is the rate on a floating-rate bond determined?

A: The bond that changes in interest entirety in line with market interest rates or a few other…

Q: Is current yields affected by whether the bond is callable ?

A: A callable bond is a bond where the institution that issues the bond has the option to prematurely…

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: Is having a call feature advantageous for a bond issuer? Why do you think that is?

A: A call provision seems to be a clause in a bond or even other fixed-income instruments agreement…

Q: What effect does collateral have on a bond's interest rate? What effect does subordination have on a…

A: There are various factors that impact a bond's price. We discount back the future cash flows of a…

Q: What exactly does the coupon rate on a bond relate to? What range of S&P credit ratings are assigned…

A: Answer are as follows

Q: Why is the discount and premium on bond issues amortized?

A: The bonds can be issued at premium or discount on the basis of market rate of similar bonds.

Q: Is it beneficial for a bond issuer to have a call feature? Why or why not?

A: Introduction : In simple words, bond call option refers to the option under which the holder gets…

Q: What is the purpose of bond ratings? What types of risks associated with a bond investment are these…

A: Investors must analyze the bond ratings before making any investments in bonds.

Q: What is the stated rate for a bond?

A:

Q: immunization of a bond portfolio

A: Immunization is a risk-reduction approach that aligns asset and liabilities duration to protect…

Q: What exactly is a bond's "call" feature? What impact does the call feature have on bond premium or…

A: This question explains about a bond's "call" feature the call feature have on bond premium or…

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…

Q: What is a term bond?

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: What are the similarities and differences between warrants and convertible bonds?

A: Warrants are derivatives that give power to buy or sell any security within a period of time. It can…

Q: What is return formula for bond?

A: Solution-      Bonds-                  A bond is a fixed financial gain instrument that represents a…

Q: 5. What is the difference between a general obligation bond and a revenue bond and what the…

A: General obligation bonds are municipal bonds that are backed by the state or local government. These…

Q: are types of bond insurance available in the market (explain them)? How do the bond insurance affect…

A: Bond insurance are available in the market and this is done to improve the rating of bonds and…

Q: What effect does collateral have on the interest rate paid on a bond? Subordination also has an…

A: Many variables influence the interest rate on a bond, including collateral, subordination, and so…

Q: Why are investment-grade bonds more marketable and why are junk bonds issued at all?

A: Introduction: Bond is nothing but debt securities issued by a company or government if they want to…

Q: Are interest rates of junk bonds always higher or lower than investment-grade bonds? Why?

A: A bond is a financial instrument that pays interest to the investor periodically and return of…

Q: What is a clean and dirty price of a bond?

A: SOLUTION:- The clean price of a bond refers to the price which does not includes accrued interest.…

Q: Is having a call feature advantageous for a bond issuer? If so, why or why not?

A: This inquiry is about a call feature that is beneficial to a bond issuer.

Q: What are junk bonds?

A: Answer: A junk bond is a high risk and high yield bond often considered as unsecured bond that is…

Q: What is the straight-line amortization approach with regards to a bond discount or premium?

A: Bond with a straight-line amortization schedule: The straight-line amortization technique is a way…

Q: What are the circumstances in which one may buy a bond certificate at a price that is higher or…

A: Bonds are issued by a company to raise finance.

Q: What are the similarities and difference between bonds and notes?

A: Notes payable: Notes payable is a written promise to pay a certain amount on a future date, with…

Q: What happens when a bond's market rate is less than the stated rate?

A:

Q: How does accrued interest on a bond affect the purchase price?

A: Interest on bond is normally paid semi annually. When a bond is transferred in between these…

Q: What is a bond? What are some features of a bond? How do you value bonds? What factors can affect…

A: Bond is one of the most used debt instruments that are used both by private and government…

Q: bonds

A: Convertibles are defined as bonds that are issued by companies who want to grow. Convertibles are…

Q: Why does the required rate of return for a particular bond change over time?

A: Bond is fixed rate long term debt instrument used by a business entities to raise funds from general…

Q: What is the difference between serial bonds, term bonds, callable bonds, and convertible bonds.

A: Bonds are securities which are issued for specified period and bear fixed interest payable on the…

Q: What happens when the bond's market rate is greater than the stated rate?

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: How do bond duration and bond convexity work together to assess the interest rate risk of a bond…

A: This topic discusses bond duration and bond convexity, which work together to estimate a bond…