An increase in the yield to maturity of a bond will result

Assignment Help Financial Management
Reference no: EM131551256

All else being equal, an increase in the yield to maturity of a bond will result in:

an increase in the maturity value of the bond.

an increase in the market price of the bond.

a decrease in the rate of return at which the cash flows from the portfolios can be reinvested.

a greater interest rate price risk on a long-term bond than on a short-term bond

Reference no: EM131551256

Questions Cloud

Explain what it means that a financial market is efficient : Explain what it means that a financial market is efficient. What is a market order? What is a limit order?
Where does translation exposure occur : Where does translation exposure occur? Is it in the MNC's home country, or in its host country where it has a subsidiary? Explain and give an example.
Constructed manufacturing plant : Brower, Inc., just constructed a manufacturing plant in Ghana. Determine the NPV for this project. Should Brower build the plant?
The cost of issuing new common stock : Bouchard Company's stock sells for $20 per share, Which of the following is the cost of issuing new common stock?
An increase in the yield to maturity of a bond will result : All else being equal, an increase in the yield to maturity of a bond will result in:
Pick the least-expensive car for your new delivery service : You are trying to pick the least-expensive car for your new delivery service. If the business has a cost of capital of 13 percent, calculate the EAC.
What are the reward-to-risk ratios : If the risk-free rate is 4.0 percent and the market risk premium is 8.6 percent, what are the reward-to-risk ratios of Y and Z?
Particular part of the us federal tax code : A 1031 Exchange refers to a particular part of the US federal tax code that allows
Explain loanable funds theory : What is the future value of $400 in 18 years assuming an interest rate of 8 percent compounded semiannually? Explain Loanable Funds Theory.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd