Relationship between bond price and time, Financial Management

Assignment Help:

Relationship between Bond Price and Time (If Interest Rates are Constant)

The bond price changes as the bond moves closer to its maturity. If the bond is quoted at a premium, the price of the bond decreases as it approaches maturity. And if it is quoted at discount, the price of the bond increases  as it approaches maturity date. In both the cases, the bonds will reach par value at the time-of-maturity.


Related Discussions:- Relationship between bond price and time

Amount of the total liabilities, A firm has net working capital of -$800. L...

A firm has net working capital of -$800. Long-term debt is $15,400, total assets are $24,800 and fixed assets are $19,100. What is the amount of the total liabilities.

Define country’s economic well being enhanced, How is a country’s economic ...

How is a country’s economic well-being enhanced through free international trade in goods and services? As per to David Ricardo, with free international trade, it is mutually adv

Financial and management accounting, the salaries paid in 2004 is rs 500000...

the salaries paid in 2004 is rs 500000 outstanding is rs 20000 salaries paid in advance for 2004 is rs 30000 what is the actual salary expenditure for 2004 which accounting princip

Define gatt and what is its goal, What is GATT, and what is its goal? GAT...

What is GATT, and what is its goal? GATT is also termed as General Agreement on Tariffs and Trade.  It is a treaty which seeks to decrease trade barriers among participant nation

Explain the term - financial analysis, Financial analysis The purpose o...

Financial analysis The purpose of financial statements is to provide information to all the users of these accounts to assist them in their decision-making. It has to be concer

Determine rates that company enter into a $/£ currency swap, Suppose a comp...

Suppose a company is quoting swap rates as follows:  7.75 - 8.10 percent yearly against 6-month dollar LIBOR for dollars and 11.25 - 11.65 percent yearly against six-month dollar L

State the term- dealing with general risk, State the term- Dealing with gen...

State the term- Dealing with general risk Part  of  the  strategic  decision  making  process  is  to  analyse  all  risk  factors  involved  with pursuing a specific course of

Types of working capital, TYPES OF WORKING CAPITAL Working capital can ...

TYPES OF WORKING CAPITAL Working capital can be split up into two categories on the basis of time. They are Permanent Working Capital and Temporary or Variable Working capital

Leverage, What is the importance of leverage in business management of a sm...

What is the importance of leverage in business management of a small scale company

Write Your Message!

Captcha
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