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.
Cash Flow Statement Ratios: This ratio, which is defined as a percentage, compares a company's operating cash flow to its total sales or revenues, which provide investors an i
Describe the Concept of Block of Assets? (a) Comment on the techniques of Risk Analysis commonly employed in Capital Budgeting. (b) Define clearly the concept of block of as
Question: (a) Show how the Medium Term Expenditure Framework is superior to the traditional one-year presentation of the public sector budget. (b) What are the pre-requisite
Accounting and Financial Management 1. What is over capitalization? How do we know over capitalization has occurred? 2. Explain permanent and temporary working capital. 3
Long- T er m Debt Long-term debt is a debt obligation that has a maturity from the date the obligation was incurred of more than one year. The debt obligation com
Put This is an agreement which is allowing a holder of privacies to sell them back to the issuer at a specified amount during a specified time interval. This technique protects
how do you find total cash outflow through maturity
Q. Show objections against profit maximization? 1) Profit cannot be ascertained well in advance to express the. Probability of return as future is Uncertain. It is not at all p
You have to make a payment of $1,561.39 in 10 years. To get the money for this payment, you will make 5 equivalent deposits, starting today and for the following 4 quarters, in a b
what business organization do you preffer ? service concern,trading concern or manufacturing concern
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