Longer-term bonds and short-term bonds, Financial Management


  1. How is a bond like a loan?                                              
  2. How does an investor receive a return from buying a bond? 
  3. Does a bond's yield to maturity determine its price, or does the price determine the yield to maturity? Explain it.                         
  4. Why the longer-term bonds more sensitive to changes in interest rates than short-term bonds?      


Posted Date: 2/16/2013 12:17:41 AM | Location : United States

Related Discussions:- Longer-term bonds and short-term bonds, Assignment Help, Ask Question on Longer-term bonds and short-term bonds, Get Answer, Expert's Help, Longer-term bonds and short-term bonds Discussions

Write discussion on Longer-term bonds and short-term bonds
Your posts are moderated
Related Questions
In 1952, to provide equilibrium between assets and liabilities of insurance companies, Frank Redington, an English actuary, proposed interest rate immunization te

Explain and compare the costs of hedging via the forward contract and the options contract. Answer: There is no up-front cost of hedging through forward contracts. Though, in t

Question 1 What is liquidity risk? What are the causes for liquidity risk? Question 2 Explain the powers and functions of SEBI Question 3 Discuss the various categories

A bond investor is always exposed to credit risk. Credit risks can be classified into three types. They are: Default Risk Credit Spread Risk

Question: (a) Describe the axioms of utility. (b) An economic agent has a logarithmic utility function, U(W) = lnw and has initial wealth $20,000. She is offered the subsequent g

The net income of Novis Corporation is $45,000.  The company has 20,000 outstanding shares and a 100 percent payout policy.  The expected value of the firm one year from now is $1,

Determine the steps for managing the funds For managing the funds first thing you would need is information. Externalinformation has to be collected from environment and accoun

At entity level - Inherent risk Integrity of management. Management's experience and knowledge Over reliance on key customers. Unusual pressures on management

For holders of CARDS, the interest is paid monthly and the principal is not amortized. The principal payments made by credit card borrowers are

Question : One activity of the study phase is: "Establish Ground Rules for the Study and Design Phases". (a) What are ground rules? (b) When developing ground rules for a