0
What else can I help you with?
What is efficiency always less than?
It is always less than 1 or 100%.It is always less than 1 or 100%.It is always less than 1 or 100%.It is always less than 1 or 100%.
Are negative numbers always less than their absolute value?
Negative numbers are always less than their absolute value.
Is the remainder always greater than or less than the divisor?
It SHOULD always be less than the divisor... Otherwise your answer is wrong.
Is negative 5 less than 5?
A negative number is always less than a positive number, in the exact same way that 3 is less than 4 and always will be.
The square of a fraction less than one will always be?
... less than the original fraction.
If a bond's yield to maturity exceeds its coupon rate does the bond's current yield must also exceed its coupon rate?
No......The price of the bonds will be less than par or 1,000.....
What does 1000.00 dollar bond cost?
The cost of a $1,000 bond typically refers to its face value, which is the amount the issuer agrees to pay the bondholder at maturity. However, the market price can vary based on interest rates, credit quality, and time until maturity. If the bond is sold at a premium or discount, it may cost more or less than $1,000. For example, if interest rates rise, the bond might sell for less than its face value.
Why does bond duration decrease if yield increases?
Bond duration measures the sensitivity of a bond's price to changes in interest rates, reflecting the average time it takes to receive the bond's cash flows. When yields increase, the present value of future cash flows decreases, leading to a lower bond price and a shorter duration. This occurs because higher yields make future cash flows less valuable, effectively reducing the time-weighted average of those cash flows. As a result, the bond becomes less sensitive to further interest rate changes, thus decreasing its duration.
What does duration tell you about the sensitivity of bond portfolio to interest rates?
Duration measures a bond's sensitivity to changes in interest rates, indicating how much the price of a bond or bond portfolio is likely to fluctuate as rates change. A higher duration means greater sensitivity, implying that the bond's price will change more significantly with interest rate movements. Conversely, a lower duration indicates less sensitivity and smaller price changes in response to interest rate shifts. Therefore, duration is a crucial tool for assessing interest rate risk in a bond portfolio.
What happens when a bond YTM is less than it's coupon rate?
When a bond's yield to maturity (YTM) is less than its coupon rate, the bond is trading at a premium. This means that investors are willing to pay more than the bond's face value because the coupon payments are more attractive compared to current market interest rates. As a result, the bondholder receives higher periodic interest payments than what is available in the market, making the bond more valuable. Over time, the bond's price will decrease as it approaches maturity, aligning its yield with the prevailing market rates.
Call provision or sinking fund make bond more or less risky?
A call provision can make a bond more risky for the investor because it gives the issuer the option to redeem the bond at a predetermined price before maturity, potentially preventing the investor from earning interest for the full term. On the other hand, a sinking fund provision can make a bond less risky for investors as it requires the issuer to set aside money regularly to retire a portion of the bond issue before maturity, reducing the overall outstanding debt and default risk.
Does these provisios make bonds more or less risky?
Provisions in bonds can make them either more or less risky, depending on the specific details. For example, call provisions can make a bond more risky for investors as they allow the issuer to redeem the bond early. Conversely, provisions like sinking funds can make a bond less risky by requiring the issuer to set aside money to repay the bond at maturity.
What is a discount on bonds payable account in accounting?
All bonds have a stated or "par" value, which is the value that the bond will hold after the bond term is completed at maturity (par value is usually $1000 per bond). When a bond is issued at a discount, it means that a company issued the bond for less than the par value (i.e less than $1000). The original discount is calculated as the difference between the par value and the bond sale price, and it is amortized over the life of the bond.
Are hamsters always scared?
No, only if they are not used to you. Once you bond, he will be a lot less scared.
What best describes a bond?
A bond is a debt security issued by a government or corporation to raise capital. Investors who purchase bonds are essentially lending money to the bond issuer in exchange for periodic interest payments and the return of the bond's face value at maturity. Bonds are typically considered less risky investments compared to stocks.
If the yield curve is downward sloping what is the ytm on a 10 year Treasury coupon bond relative to that on a 1 year T-bond?
If the yield curve is downward sloping, the yield to maturity on a 10-year Treasury coupon bond relative to that on a 1 year T-bond is the yield on the 10 year bond. It will be less than the yield on a 1-year bond.Ê
If two bonds have the same maturity the same yield to maturity and the same level of risk the bonds should they sell for the same price regardless of the bond's coupon rate?
if two bonds offer the same duration and yield, then an investor should look at their levels of convexity. if one bond has greater convexity, it is less affected by interest rate changes. also, bonds with higher convexity will have higher price than bonds with lower convexity regardless whether interest rates rise or fall. Ergo, investors will have to pay more with greater convexity due to the bond's lesser sensitivity to interest rate changes.
