Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Illustration
Discount bond (5 yr. bond with 10% coupon) (expected rate yield at 12%)
Premium bond (expected yield at 7.8%)
5
92.6
109.0
4
93.8
107.4
3
95.1
105.8
2
96.5
104.0
1
98.2
102.0
0
100.0
Reasons for price changes of a bond:
Change in the yield requirement of the issuer due to changes in the quality of credit of the issuer.
Change in the price as the bond approaches maturity in case of premium or discount bond.
Change in the price because of change in the yields of comparable bonds/securities.
While computing the bond pricing, the following assumptions are made:
Cash flows are known.
Coupon payment annually/semi-annually is made at exact period.
Required yield can be estimated.
One rate is used to discount all cash flows, i.e., with required yield rate.
The following cash factors are to be considered:
For callable bonds, cash flows cannot be certain. The investment decisions of the issuer depend on interest rate movements and other factors.
It is not possible to determine the appropriate yields and it need not be a single rate for all the future cash flows.
Principles of Good Regulation While performing its functions, the FSA needs to take into account certain matters which are termed the ‘principles of good regulation'. The matte
A proforma cost sheet of a company provides the following data: RO Cost (per unit) Raw materials 52
Explain the aspects of financing decision The financing decision covers two interrelated aspects: (1) capital structure theory (2) capital structure decision.
#questionoperating cycle in vegetable growing business in uganda..
What are the types of firms that securities firms and investment banking industry included? Into the USA, the securities firms and investment banking industry comprises several
What is Cost of Capital Cost of Capital is the rate which should be earned in order to satisfy required rate of return of the firm's investors. It may also be defined as the ra
Beta Value Risk is an important consideration while investing in any security. It is the possibility that realised returns will be less than the returns expected. The degree, t
Q. What is Current Asset? Current Asset - ASSET which one can reasonably expect to convert into cash, sell or consume in operations within a single operating cycle or within a
Explain about the debt policy Designing debt policy the debt policy of a firm is significantly influenced by the cost consideration. In designing financing policy, that is, p
15 points) You need to develop a personal budget. Try to be as realistic as possible. If you are going to school and not working then do some research to find out what salary you w
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd