Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
The effective maturity of a callable bond can be anywhere between the first call date and its maturity date due to the presence of the call feature.
A callable bond is similar to an Option-free bond with a call option from the bondholder. Value of a callable bond is therefore the value of an option free bond minus the value of the call option.
Value of callable option = Value of an option-free bond - Value of a call option on the bond.
We have already seen the calculation of value for an option-free bond and the value of a callable bond. The difference between both the values will give the value of the call option. In our illustration, the value of the option-free bond is $100.714. If the call price is $99, each year and the value of the callable bond with an assumed volatility interest of 10% is $100.123, then value of the call option is $0.501.
Q. Working capital mini Qs? During January 20X4, Gazza Ltd made credit sales of £30,000 that have a 25% mark up. It also purchased £20,000 of inventories on credit. Calculat
International Finance Problem Analyze the attached case, along the lines indicated by the Assignment questions listed at the end of the case. Since you will have plenty of tim
What do financial managers look for when they analyze pro forma financial statements? Later than the pro forma financial statements are complete, financial managers analyze the f
Nick Leeson and Barings Leeson was the trader who managed to bring about the collapse of Barings Bank in 1995. The main reason he was able to do this was because there was a ce
A 10-year, 12% semi-yearly coupon bond with a par value of $1,000 may be called in 4 years at a call price of $1,050. The bond sells for $1,050. (Suppose that the bond has just bee
OTCEI-COMPOSITE INDEX The OTCEI index is a pure price index. The sum of the prices of all shares as of June, 1993 is in the denominator. The current prices are in the numerator
The Manager or Management Company The firm sponsoring the Fund could often structure it as a management company. Its primary responsibility is to determine investment strategie
3 approach current asset financing
Q. Explain about Discount Rate? Discount Rate - Rate at which INTEREST is deducted in advance of the issuance, selling, purchasing or lending of a financial instrument. Also, t
Treasury securities are government bonds issued by the US Treasury Department. These are issued through the Bureau of the Public Debt. They are debt-financing ins
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd