Characteristics of fixed income securities

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Reference no: EM133035414

1. What are the four key characteristics of fixed income securities

2. Can you explain the four key characteristics of fixed income securities.

3. What are the risks of investing in bonds?

4. A 2-year corporate bond offers a 5% semiannual coupon payment. Can you list the cash flows associated with this bond.

5. Can you define yield to maturity.

6. How do changes in the market YTM affect the value of a bond?

7. How many basis points does the price of a one-year zero coupon bond change when the market YTM increases by 50 basis points from 3% to 3.5%? (It may help your calculations to assume a face value of $100.)

8. When do bonds trade at a premium? When do bonds trade at a discount

Reference no: EM133035414

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