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Q: Is bond duration always less than maturity?
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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.....


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.


Are hamsters always scared?

No, only if they are not used to you. Once you bond, he will be a lot less scared.


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.


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 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.


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


What are zero-coupon debentures or bonds?

A zero coupon bond pays no interest. Thus the market price for such a bond is always LESS than the maturity (face) value. The amount by which the bond is priced below its maturity value is known as the DISCOUNT. For example, a $100 zero coupon bond maturing in one year priced to yield 10% (in simple terms) would be sold to the investor for $90.91 on the date of issue. The investor would receive no payments from the borrower until maturity, at which time the investor receives the $100 face value. Some brokerages will take a regular bond with coupons and "strip" it. They'll remove the coupons and sell the corpus of the bond separately from the coupons. A zero-coupon bond that was issued as such will normally have a really long maturity date--five to ten years isn't uncommon. You buy them as long-term investments...if you've got a child who will begin college when she's 19, you might want to buy ten-year zero-coupons that mature as the child enters each year of college.


If the Treasury yield curve is downward sloping how would the yield to maturity on a 10 year Treasury coupon bond compare to that on a 1 year Treasury bill?

The yield on a 10-year bond would be less than that on a 1-year bill


What is the duration of Not One Less?

The duration of Not One Less is 1.77 hours.


What do you have to have if you dont have auto insurance?

Most states require either the insurance or a cash bond to be on file with the state. The insurance is always less expensive than the bond but it is an option.