Relationship between bond price and time, Financial Management

Relationship between Bond Price and Time (If Interest Rates are Constant)

The bond price changes as the bond moves closer to its maturity. If the bond is quoted at a premium, the price of the bond decreases as it approaches maturity. And if it is quoted at discount, the price of the bond increases  as it approaches maturity date. In both the cases, the bonds will reach par value at the time-of-maturity.

Posted Date: 9/10/2012 5:41:56 AM | Location : United States







Related Discussions:- Relationship between bond price and time, Assignment Help, Ask Question on Relationship between bond price and time, Get Answer, Expert's Help, Relationship between bond price and time Discussions

Write discussion on Relationship between bond price and time
Your posts are moderated
Related Questions
considering the following information,what is the prise of the share as per gorden''s model?

The value of node is determined using a methodology called backward induction. The value at any node depends on the future cash flows; therefore, we need to start from

Margining System: Indian capital markets have finally acquired an international flavor with the market-wide rolling settlement coming into place on both the premier exchanges (

What are number of factors that influence the shape of the yield curve? There are some of factors which influence the shape of the yield curve as follows: (1) Expectations

1. Capital Asset Pricing Model and Multinational Corporations Why do some critics say the CAPM model is not appropriate in an international setting? Please explain a way that

Dividend yield Dividend yield = (Dividend per share/Market share price) x 100% Dividend yield is the cash return on the share (not whole return which is cash dividend and ca

Globalization of the Financial Markets There are many economies in the world that have opened their gates for foreign participants and companies. Trading takes place not only i

Once capital markets are integrated, it is hard for a country to maintain a fixed exchange rate. Explain why this may be so. Answer: one time capital markets are integrated int

How are foreign exchange transactions between international banks settled? Answer:  a network of correspondent banking relationships is known as the interbank market with large c

The case of McKesson & Robbins scandal (1938) was happen due to internal fraud. This case is also happen by the faulty work of board of directors. The organization of McKesson & Ro