Illustrate the zero bonds security instruments, Financial Management

Assignment Help:

Illustrate the zero bonds security instruments.

Zero coupon bonds are instruments under that a borrower promises, at the recent time, to pay one exact nominal sum (face value) to the lender at one exact future date. Into return, at the recent date the borrower obtains the bond price. Zeros are also termed as discount bonds. Obviously, with positive interest rates, there the price of a zero coupon bond should be lower than the face value.


Related Discussions:- Illustrate the zero bonds security instruments

Compare financing arrangements and substantiate, North Star Company, a U.S....

North Star Company, a U.S. based MNC, is considering to establish a subsidiary to capitalize on the removal of Eastern European border restrictions. The subsidiary would manufactur

No external financing for new proposals, No External Financing for New Prop...

No External Financing for New Proposals: If a firm have sufficient retained earnings with it as required by the new proposal, then the firm may not raise any external finance. In

What is certified financial planner, Q. What is Certified Financial Planner...

Q. What is Certified Financial Planner? Certified Financial Planner (CFP) - Individuals who are trained to develop and implement financial plans for businesses, individuals and

Explain riskiness of portfolios, Why does the riskiness of portfolios have ...

Why does the riskiness of portfolios have to be looked at differently than the riskiness of individual assets? The riskiness of portfolios should be looked at differently as comp

Linear programming, Linear programming, one of the ...

Linear programming, one of the important techniques of operations research, has been applied to a wide range of business problems. This techniqu

Explain the bird in the hand theory of cash dividends, Explain the bird in ...

Explain the bird in the hand theory of cash dividends. The bird in the hand dividends theory states that dividends received now are better as compared to a promise of future divi

Liquidity risk, what role do core deposits play in predicting the probabili...

what role do core deposits play in predicting the probability distribution of net deposit drains

MIS, evaluation and maintenance of MIS

evaluation and maintenance of MIS

What is the meaning of leverage, What is meant by Leverage? What are its di...

What is meant by Leverage? What are its different types? With what type of risk is associated with each type of leverage. (Explain with illustration)

Write Your Message!

Captcha
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