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Different bonds trade at different yields though the coupon rate, maturity, and embedded options are same for them. Assuming that all the other bond characteristics are the same, the bond with a lower yield is more volatile in terms of both percentage price change and absolute price change. This implies, at a given change in the interest rates in the market, price sensitivity becomes lower at a higher rate of interest and vice versa in case of lower rate of interest.
TYPES OF WORKING CAPITAL Working capital can be split up into two categories on the basis of time. They are Permanent Working Capital and Temporary or Variable Working capital
Assume you are a professional financial analyst working for a wealthy investor. Your client has $2.6 million to invest and wants to sink it into a single stock (diversification is
The Selling Process The four key elements that constitute the selling process are: (i) identification of prospective buyers, (ii) selection of the type of selling process to be
Coefficient of Determination As before, Where, We can show that TSS = RSS + ESS We can also show that F = is an F distr
A futures contract is a contract to purchase (and sell) a particular asset at a fixed price in a future time period. There are two parties for every futures contract - the seller o
Floaters that can be classified under this head are: 1. Stepped Spread Floaters 2. Extendible Reset Bonds
Evaluate d importance of leverage in a financial management of a small sacle business
Emerging market bonds are the bonds offered by less developed countries. The government normally issues them. These exclude borrowings from gove
strengths and weakness
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