Impact on the market value of a corporate bond

Assignment Help Finance Basics
Reference no: EM131866933

What is the net impact on the market value of a corporate bond if the bond rating of the issuing organization decreases and market interest rates increase? Why?

Reference no: EM131866933

Questions Cloud

How might culture contribute to the definition of pathology : Post your response to the question below with at least 300-400 words in the Discussion Area by the due date assigned.
Weekly simple discount rate : How many weeks would it take to increase the debt of a simple discount loan by 80% if the weekly simple discount rate is 1.7%?
What overall percent did the price increase : Suppose a certain item increased in price by 15% a total of 4 times and then decreased in price by 8% a total of 2 times. By what overall percent did the price.
The balance between national security and privacy rights : The balance between national security and privacy rights is a topic that often has the population divided.
Impact on the market value of a corporate bond : What is the net impact on the market value of a corporate bond if the bond rating of the issuing organization decreases and market interest rates increase? Why?
How might the organization weaknesses be seen as risks : You should be looking for risks that could prevent the process from being fully implemented or that could prevent the process from being more efficient.
Equity in the computation of town crier wacc : If the common shares are selling for $28.30 per share, the preferred shares are selling for $15.80 per share, and the bonds are selling for 96.97 percent of par
Discuss how a leader might develop individuals : Describe Kelleys effective followership and Describe how a leader might utilize the Kelley model of followership to assess follower effectiveness
How long will it take you to become a millionaire : How long will it take you to become a millionaire? No need to consider diversification or risk.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is this corporations social corporate responsibility

a what is this corporations social corporate responsibility for each ethical issue or concern for the four areas of

  Explain what is the npv of the project

There is no change expected in the other working capital components. The discount rate is 8% and What is the NPV of the project?

  Objective question based on finance

Tangshan Mining has common stock at par of $200,000, paid in capital in excess of par of $400,000, and retained earnings of $280,000.

  Explain what happens to expected return as beta increases

Financial researchers at Smith Sharon, an investment bank, esti- mate the current security market line as E(Ri) = 4.5 + 6.8(?i).

  Example of technological innovation

Give an example of technological innovation from the last two decades. What forces led to the commercialization of the science behind the technologies? Did the capability exist before the market demand or was the demand there before the technology..

  What part of trend-line value

Trend-line Inc. has been growing at a rate of 6 percent per year and is expected to continue to do so indefinitely. The next dividend is expected

  Adventure learning and action learning

The Noe text describes both adventure learning and action learning as methods for instruction.

  You can to deposet 400 at the end of each year for 16

you can to deposet 400 at the end of each year for 16 years in an account that pays 9 compunded annually. what is the

  Shares of the sugarcooky corp

Randal Flapjack is a retired short-order cook living on a fixed income in the state of Utopia where all financial markets are perfectly efficient. Randal has 20,000 shares of the Sugarcooky Corp.,which pays an annualized dividend of $1.00 per shar..

  Do you think google has a serious public relations problem

On balance, do you think Google has a serious public relations problem?

  Briefly name and describe some organizational forms

Briefly name and describe some organizational forms other than corporations that provide owners with limited liability.

  Determine weighted average cost of equity

Determine Company C's weighted average cost of equity, given the following data:

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