Which bond would be the worst to own and why

Reference no: EM13269555

Bonds could be short-term, medium term or long term. If you thought that interest rates were about to increase, which bond would be the worst to own and why?

Relate your answer to the following bonds:

a. 10-year, 5 percent coupon
b. 10-year, 0 percent coupon
c. 15-year, 5 percent coupon
d. 15-year, 0 percent coupon

Reference no: EM13269555

Questions Cloud

What is the power factor of the current supplied : Two one phase loads, a 5kW resistor, and a 10kVA load with a 0.707 lagging power factor are connected in parallel to a 120 V source. What is The power factor of the current supplied to the two loads by the source

Explain the concept of personalized self-serve solutions : Explain the concept of personalized self-serve solutions and the role of web content as it relates to a customer's individual needs.

Determine the largest index of refraction : What is the largest index of refraction that the liquid can have, such that none of the light is transmitted into the liquid and all of it is reflected back into the solid

Explain what is the molecular formula of the compound : A compound is 42.9% C, 2.4% H, 16.7% N, and 38.1% O, by mass. Addition of 6.00 grams of this compound to 50.0 ml benzene, C6H6 (d = 0.879 g/mL), lowers the freezing point from 5.53 to 1.37 degrees celsius. What is the molecular formula of this com..

Which bond would be the worst to own and why : Bonds could be short-term, medium term or long term. If you thought that interest rates were about to increase, which bond would be the worst to own and why?

Define the concept of time value of money : Define the concept of ‘time value of money'. Could the ‘time value of money' vary over time? Search different periods in economic history to find examples to support your argument.

Explain carboxylic acid is burned in oxygen : A 0.4600 g sample of carboxylic acid is burned in oxygen, producing 0.8202 g of CO2 and 0.3377 g of H20. Determine the empirical formula of the carboxylic acid.

Compute the index of refraction of the liquid : Light in a vacuum is incident on a transparent glass slab. The angle of incidence is 37.3°. compute the index of refraction of the liquid

What is its times-interest-earned ratio : Graser Trucking has $10 billion in assets, and its tax rate is 35%. Its basic earning power (BEP) ratio is 16%, and its return on assets (ROA) is 6%. What is its times-interest-earned (TIE) ratio?

User Account

All Pages