the bonds of differe likely to mov

Q: How the bond convexity affects the accuracy of the firs order approximation method? What are the…

A: Convexity is a risk-management technique that may be used to assess and manage a portfolio's…

Q: True or false. It is possible to immunize a portfolio using duration and convexity with two bonds.…

A: A portfolio is defined as the collection of financial investments such as bonds, stocks,…

Q: Define duration (bond)

A: Bond duration: It is defined as the sensitive interest rate to the time of repayment of the…

Q: d. What is the bond’s yield to call?

A: Yield is that percentage of the securities at which the return is provided by the company to its…

Q: Using an appropriate diagram, discuss to which extent duration measure of a bond is related to its…

A: Duration and convexity are two tools used to manage the risk exposure of fixed-income investments.…

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: Explain the bond theorems discussed in class witNrespect to time and coupon.

A: bond: it is a debt instrument issued by the firm to raise capital.

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: Define Puttable bond.

A: Puttable bond: A puttable bond is a kind of bond that offers the right to the bond holder, but not…

Q: 1. Why do callable bonds have negative convexity (concavity)?

A: Callable Bonds: It is a debt instrument where the company (issuer) has the right to call/redeem the…

Q: Define Callable bond.

A: Bonds are debt instruments that are issued for raising loan. Bonds include periodic interest…

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 is original issue discount (OID) bond?

A: It is the amount of difference between the amount due at maturity and purchase value. These bonds…

Q: Define Indexed bond.

A: Indexed bond can be defined as a bond in which interest payment are based on some defined price…

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: 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: What are callable and puttable bonds? Explain in single sentence please.

A: Callable bonds are the bonds which can be redeemed anytime at the option of the issuer before its…

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 are the two bond amortization methods mentioned in the book and how are they different?

A: There are two methods for amortization of bond discount or premium on bonds payable..... They are…

Q: What is a serial bond?

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

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: Compare and contrast two different types of bonds explaining their advantages and disadvantag

A: Bonds can be referred to as investment security issued by a large private organization or by the…

Q: Verify the local analysis of the bond pricing equation nearr=β/α.

A: Introduction: The purpose of this analysis is to verify the local analysis of the bond pricing…

Q: How is antidilution determined when multiple securitiesare involved?

A: Anti-dilution: An anti-dilution  refers to the convertible security or an option that are created…

Q: What type of bond would discourage a frivolous bidder? a. Payment b. Bid c. Labour and material d.…

A: A bond is a type of loan raised by the company for the purpose of financing the assets. The bonds…

Q: What is the difference between D uration and Convexity of a bond?

A: Duration measures the bond's sensitivity to interest rate changes. Convexity relates to the…

Q: What cause shifts for supply of bonds? Explain by the help of graphs

A: The bond supply curve depicts the relationship between the quantity of bonds and their prices. All…

Q: Define Yankee bonds

A: Yankee Bonds:-(Defination) Yankee Bonds are issued by Foriegn Entity like foreign bank of Financial…

Q: Show ful calculation for Bond A and Bond B

A: Price of the bond is the PV of all future coupons and par value discounted at the YTM or yield. The…

Q: main components of a bond’s yield

A: Bond's yield means the total rate of return available to the bond holders from the bond over a fixed…

Q: Bond price and interest rates are INVERSELY related. Select one: True False

A: The corporation and government can raise finance by issuing bonds. The borrower i.e bond issuer is…