main components of a bond’s yield

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 are the key features of a bond?

A: A bond is a fixed income instrument. The bond holders are referred to as the debt holders or…

Q: What are some of the specific bond terms to understand the yield to maturity?

A: Yield to maturity (YTM) is the foreseen absolute profit for a bond if the bond holds until due or…

Q: Discussthe problems with the traditional bond pricing approach by using the yield to maturity.

A: Solution- YTM means Yield to Maturity refers to the percentage rate of return paid on a bond, note…

Q: Describe a bond and its characteristics.

A: Bond is a long-term debt instrument. A bond may be secured or unsecured. Bonds are issued by…

Q: What is a bond spread?

A: Answer: The term ‘bond spreads’ or yield spread is the disparity in yield between debt instruments…

Q: What are debenture bonds used for?

A: Debenture bonds: Debenture is a debt instrument which are issued to raise the capital. The debenture…

Q: What are the similarities and differences in equity valuation and bond valuation?

A: Bonds: Bonds are a debt instrument on which interest is paid. They can be issued at a discount/par…

Q: What is the carrying amount of a bond?

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

Q: the formula for obtaining the gross yield on a bond.

A: Bond is the debt instrument issued by the borrowers to raise funds from various investors. Generally…

Q: As compared to an equivalent noncallable bond, should a callable bond’s yield be higher, lower or…

A: Bonds that are solely repaid at maturity are known as non-callable bonds. A bond's issuer is not…

Q: Which of the following is most appropriate for measuring a bond's sensitivity to yield to maturity?…

A: The objective of the question is to identify the most appropriate measure for a bond's sensitivity…

Q: immunization of a bond portfolio

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

Q: What is on-the-run bond ?

A: The question is based on the concept of liquidity and issue of bond, the on-the-run bond are…

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 some common challenges or complexities associated with bond amortization?

A: Bond amortization refers to the systematic allocation of the premium or discount on a bond over its…

Q: Why is the time Submittal bonds important?

A: A bid bond is a building bond form that covers the holder or developer during a contract. It is 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: Define the following: Bond: Par Value: Maturity:

A: Given , To define the following terms:- Bond, Par value and Maturity.

Q: What is outstanding bond?

A: Bond: It can be defined as the loan given to a business or any other organization by the investor…