Reference no: EM132907697
Reviewing Bond Valuations techniques:
- A bond is a debt security, like 'IOU.'
- The bond issuers borrow from the Bond Investors.
- The issuers agree to repay the principal amount of the loan on the maturity date.
- Thus, a bond represents loans from the holder to the issuer.
Discuss the numerical examples below:
Question 1: What are the features of a zero-coupon bond?
Question 2: Explain the concept of Zero Coupon bond yields and its pricing behavior
Question 3: What are the features of a coupon bonds?
Question 4: Explain the concept of Coupon bond yields and its pricing behavior
Question 5: Discuss the 'Term Structure of Interest Rates' and how it related to the Yield Curve
Question 6: What are the different shapes of the yield curve
Question 7: What are the determinants of the shape of the yield curve
Question 8: What does it mean when a bond sells at a premium or when it sells at a discount?
Question 9: Discuss the relation between a corporate bond's expected return and the yield to maturity; define default risk and explain how these rates incorporate default risk.
Question 10: Assess the creditworthiness of a corporate bond using its bond rating; define default risk
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