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.
Convertible bonds are the debt instruments issued which can be converted after a pre-specified date for a pre-specified number of securities (generally equity stock). I
Q. Illustrate Methods to Manage cash resources? There are several methods which may be of use in managing resources. The particular tool selected will depend on its reliability
Q. Compute the economic order quantity? TNG has a current order size of 50000 units Average number of orders per year = demand/order size = 255380/50000 = 5·11 orders Ann
Q. Cost of Redeemable Preference Share Capital? Cost of Redeemable Preference Share Capital: - Redeemable preference capital has to be returned to the preference shareholders s
Generally, an interest rate or an interest rate index is used as a reference rate for However, through financial engineering, issuers have been able to construct
SEC is the Regulatory body for investor protection in the United States which is created through the Securities Exchange Act of 1934.
Q. Accounting Principles Board ? Accounting Principles Board (APB) -senior technical committee of AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS (AICPA) that issued pronoun
Have mergers affected competition? A: Federal Reserve data depict that measured on the local level, where competition occurs; markets have in fact experienced more banking comp
Learning outcome to be assessed: analyse financial statements to make decisions on the strength and adaptability of a business. A numerical analysis of the financial statements of
Interlinkage in the Financial Markets - Common Features The interlinkage present in the financial markets is essentially due to the fact that all these markets are in the proce
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