Elaborate the decision of investing in bond market

Assignment Help Finance Basics
Reference no: EM131401833

Discuss and elaborate the decision of investing in bond market based on the forecast of interest rate. What will you do if you expect long-term interest rate to increase in the near future? When will you prefer to invest in if you expect that the spread between corporate and government bonds to widen?

Reference no: EM131401833

Questions Cloud

Explain why the author methods of appealing to the audience : The questions to consider in your post are: What concrete evidence or support is the author using to sway the audience? Explain why the author's methods of appealing to the audience do/do not persuade you
What is a fair price of bond : A bond with a 3 percent quarterly coupon rate has a yield to maturity of 4 percent. The bond has a par value of $1,000 and matures in 20 years. Based on this information, what is a fair price of this bond?
What symbols signs or meaning did you apply : Did you use any of the following defective reasoning in your personal interest statement in participants:  ad hominem? False cause? Non sequitur? Circular argument? What symbols, signs, or meaning did you apply
What should be the current price : A bond with a $1,000 par value has a 4 percent annual coupon rate. It will mature in 4 years, and annual coupon payments are made at the end of each year. Present annual yields on similar bonds are 3.5 percent. What should be the current price?
Elaborate the decision of investing in bond market : Discuss and elaborate the decision of investing in bond market based on the forecast of interest rate. What will you do if you expect long-term interest rate to increase in the near future? When will you prefer to invest in if you expect that the ..
What are the fixed costs per month of garbage collection : Based on the above analysis, should the city government allow competitive bidding? Why? Would you expect there to be any quality differences between the monopolistic and competitive trash collection firms?
Amount needed for the cruise : You will need $15,000 in 7 years when you want to take a world cruise. If you can earn 6% annually how much do you need to invest now, in order to have the amount needed for the cruise?
What kind of design have they used : The U.S. Fish and Wildlife Service plans to study the kinds of fish being taken out of Saginaw Bay.- What kind of design have they used?- What could go wrong with the design that they have proposed?
Compare and contrast the different stages of dna repair : Compare and contrast the different stages of DNA repair used to correct DNA damage caused by Reactive Oxygen Species and UV radiation AND using specific examples, indicate how alterations in these pathways can lead to cancer predisposition.

Reviews

Write a Review

Finance Basics Questions & Answers

  Rank the following according to the degree of credit risk

1 rank the following according to the degree of credit risk highest credit risk 1 lowest credit risk 4i advances

  Emery inc has a beta equal to 15 and a required return of

emery inc. has a beta equal to 1.5 and a required return of 14 based on the capm. if the market risk premium is 8 the

  How performance cycle variance can be controlled

Discuss uncertainty as it relates to the overall logistical performance cycle. Discuss and illustrate how performance cycle variance can be controlled.

  What should the management do when evaluating the project

what should the management do when evaluating this project. United Fried Co. is considering investing in a project in which the risk is greater than the firm's current risk based on any method for assessing risk

  Determining annuity assessment

What is the relationship between the present value of a single dollar payment formula and present value of ordinary annuity formula for same number of years and same discount rate?

  A 45 percent corporate coupon bond is callable in five

a 4.5 percent corporate coupon bond is callable in five years for a call premium of one year of coupon payments.

  Computing future exchange rate

You are considering a project in Poland which has initial cost of 275,000PLN. The project is expected to return one-time payment of 390,000PLN four years from now.

  What is the most you could lose

Assume you sell 100 shares of Bowie Corporation short at $72. You also buy a 70 call option for 5.25 to protect against the stock price going up.

  Raise all your capital by borrowing

This year you are planning to raise all your capital by borrowing. Your assistant says that you should evaluate new investments this year using the cost of debt only. Is he/she correct? Why or why not?

  Constant debt-equity ratio

Suppose Caterpillar, Inc., has 655 million shares outstanding with a share price of $ 72.06 and $ 25.67billion in debt. If in three years, Caterpillar has 702million shares outstanding trading for $ 86.98per share, how much debt will Caterpillar h..

  Perform the test using the p-value approach

Perform the test using the P-value approach. P-value = ______ (Round to four decimal places as needed.). Compare the P-value with the level of significance alphaα.

  Discuss career paths for interest

Discuss career paths are of interest to you? How has the information presented in this course influenced your thoughts about your personal career path?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd