How a bond can be classified as a fixed-income security

Assignment Help Financial Management

Reference no: EM13928491

1. Explain how a bond can be classified as a fixed-income security when the yield to maturity can fluctuate significantly over time, depending on the market price of the bond.

2. Describe the basic features of each of the following types of bonds:

a. Floating rate bonds

b. Original issue deep discount bonds

c. Zero coupon bonds

d. Extendable notes (put bonds)

3. Explain what is meant by reinvestment rate risk.

4. Compare the debt outstanding for AMR (parent of American Airlines) and Southwest Airlines. Use the S&P Bond Guide from your library to determine the bond rating of each of these firms. What reasons can you cite for the differences in bond ratings between the firms?

Reference no: EM13928491

Questions Cloud

Ways to change the course of a brand : One of the ways to change the course of a brand is to modify the product. Under product modification, ________ adds size, weight, materials, supplements, and accessories that expand the product's performance, versatility, safety, or convenience.

Calculate the amount of gain or loss : Calculate the amount of gain or loss from the sale of the asset under each of the depreciation methods.

Strategic planning-decision making : Explain the basic steps in the planning process. Describe the steps in the decision-making process and predict how the personal attributes of the manager influence decision making.

Primary keys and referential integrity constraints : Give the DDL commands to create the tables, primary keys and referential integrity constraints. The DDL must have at least an example of each of the following. Use comments to indicate the examples.

How a bond can be classified as a fixed-income security : Explain how a bond can be classified as a fixed-income security when the yield to maturity can fluctuate significantly over time, depending on the market price of the bond.

Explain how logistics performance crucial to jit philosophy : How can strategic procurement contribute to the quality of products produced by a manufacturing organization? Explain how logistics performance is crucial to a Just In Time (JIT) philosophy.

Elements of an organization external environment : Describe the elements of an organization's external environment. Why is it important to understand the external environment?

What was the dollar amount of the price change on the bond : How much would you have to pay for one of these $1,000 face value bonds? What was the dollar amount of the price change on this bond?

Environmental issues faced by business and society : Question - Research, identify and discuss some of the environmental issues faced by business and society as well as at least two strategic approaches organizations are using to respond to these issues. Your paper should be a minimum of 2 -3 pages ..

User Account

All Pages