Explain relationship between interest rates and bond value

Assignment Help Financial Management

Reference no: EM131954780

1. Explain the relationship between interest rates and bond value. What makes interest rates change? Is it possible to lose money if you invest in bonds, even federal government bonds? Why or why not?

2. You have a sample of returns observations for the Malba Stock Fund. The 4 returns are 5.45%, 9.25%, 7.50%, and 15.0%. What is the average return and variance of these returns?

3. You are an investor interested in government’s securities in general and T-bills in particular. You are interested in a $10,000 T-bill that has 200 days to maturity and a 360-day asked discount rate of 0.150%. If you placed an order for 1000 T-bills, what will be your total dollar return when those T-Bills expire?

Reference no: EM131954780

Questions Cloud

Managing the revenue cycle requires controlling several : Managing the revenue cycle requires controlling several different components that work together to allow the organization to generate “clean” claim

What else will the ato charge on tax shortfall : Daniel was audited by the ATO. He runs a furniture business. What else will the ATO charge on tax shortfall?

Children funding when it is ready to buy equipment : If the annual interest rate on the investment is 15%, how much will be available to the Children Funding when it is ready to buy the equipment?

Start saving for retirement : You have just turned 35, and you intend to start saving for your retirement. All savings draw compound interest of 10% per year.

Explain relationship between interest rates and bond value : Explain the relationship between interest rates and bond value. What makes interest rates change?

Calculate the principal remaining on the loan : Calculate the principal remaining on the loan at the beginning of the month and the split of that month’s payment between interest and repayment of principal.

Forecasts are objective-realistic and unbiased : Financial statements analysts must ensure that their forecasts are objective, realistic, and unbiased.

What is the minimum annual cash flow required : What is the minimum annual cash flow required to make the purchase of this asset viable?

Do you think you will be able to live comfortably with money : Do you think you will be able to live comfortably with the money from the answer to the question above?

User Account

All Pages