What is a securitized Bond?

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 does the bond rating depend on?

A: It is a credit rating which represents the creditworthiness of both the corporate and the government…

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: What is managed floating rate?

A: Managed floating rate: It may be a framework that requires an issuing central bank to mediate…

Q: EXPLAIN THE ADVANTAGE OF offshore trust?

A: Offshore trust is the planning tool to protect your assets, This trust is created in abroad, It is…

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: 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: What is hedge accounting?

A:

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: 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: WHAT IS THE ADVANTAGE OF offshore trust?

A: Offshore trust companies can be defined as those companies which help customers with a high net…

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: 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: When might a bondholder use a convertibility feature?

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

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 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: Which is the relationship between the price and the implicit rate of return of a bond?

A: When a company issues a bond, it asks the investor for a loan, i.e. you're lending the bond issuer…

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 a conversion ratio? A conversion price? A straight-bond value?

A: Conversion ratio: The conversion ratio is the number of common stocks earned at the period of…

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 original issue discount (OID) bond?

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

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 interest rate?

A: Answer: At a particular situation, an interest rate determines how much money a borrower promises to…

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

A: Solution:- There are various companies like S&P etc, which give credit ratings to the companies…

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 interest rate parity?

A: Interest rate parity: Interest rate parity is a theory concerning the association among spot…

Q: How do fundamental securities differ from derivatives

A: Fundamental securities and derivatives are actively traded in financial markets. The differences…

Q: What is equity security?

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

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…

International Bonds

A bond is fixed-income security where a lender comes into a contract with the borrower. The borrower agrees to make payment and interest at a specified date in the future or on maturity period. It is a type of financing that helps to fulfill and meet obligations. Many people invest in bonds because it is a simple form of security.