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

Q: What is indexed bond?

A: It is a bond with a interest rate which is connected to a index, for example, the bond market…

Q: What is Bond's interest income?

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

Q: What impact do interest rates have on bond prices? What are the basic assumptions that go into…

A: This question explains about the fundamental assumptions that go into establishing the value of a…

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: 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: What economic circumstances might encourage investors to use a bond's convertibility feature

A: This question outlines how current economic conditions may encourage investors to use a bond's…

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: . 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: How do you calculate the price of bonds if you know their par value, contract rate, and market rate

A: This question dells with  a bond's price if you know its par value, contract rate, and market rate

Q: What are Bond prices and interest rates? And what is the relationship between them?

A: Bond is a debt instrument which provides regular periodic interest income to an investor. Generally,…

Q: When might a bondholder use a convertibility feature?

A: This question illustrates how a bondholder can benefit from the convertibility provision.

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: 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: ole do bond length and bond convexity play in determining the interest rate risk of

A: In the bond portfolio interest is one of the major factor affecting on the bond.

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: 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 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 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: What effect do interest rates have on bond prices? What are the fundamental assumptions that go into…

A: SOLUTION-   A BOND REPRESENTS A PROMISE BY A BORROWER TO PAY A LENDER THEIR PRINCIPLE AND USUALLY…

Q: How is the price of a bond (or bond issuance) determined?

A: solution concept coupon rate of bond               The coupon rate of the bond is the stated…

Q: What effect do interest rates have on bond prices? What are the essential assumptions behind bond…

A: Introduction: Bonds are a kind of debt that the firm must repay. The term "coupon interest" refers…

Q: immunization of a bond portfolio

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

Q: Why bonds is an investment opportunity and its benefits to bondholder?

A: Bonds are safe investment for investors and it is form of debt provided by investors to companies.…

Q: What are the risks of debt securities?

A: Debt securities: Debt securities can be described as a type of debt instrument that is purchased and…

Q: What is the meaning of contemporary bonds

A: If enough funds are not available with the firm, in that case it can have funds from outside. These…

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…